Fitch Ratings has revised the Outlooks on the Long-Term Issuer Default Ratings of Genting Berhad and its wholly owned subsidiaries, Genting Overseas Holdings Limited and Resorts World Las Vegas LLC, to Stable from Negative.
The rating agency has also affirmed the IDRs of GENT and GOHL at ‘BBB’, and RWLV at ‘BBB-‘. The rating on USD1.5 billion senior unsecured notes due 2027, which are guaranteed by GOHL, has been affirmed at ‘BBB’, while the ratings on RWLV’s USD1.35 billion senior unsecured notes due in 2029 and 2031 and its senior secured credit facilities have been affirmed at ‘BBB-‘.
It has also revised its Outlook on the Long-Term Issuer Default Ratings of Genting Malaysia Berhad and its wholly owned subsidiary, Genting New York LLC, to Stable, from Negative. Fitch has also affirmed GENM’s IDR at ‘BBB’ and GENNY’s at ‘BBB-‘. The rating on the USD1 billion senior unsecured notes due 2031, which are guaranteed by GENM, has been affirmed at ‘BBB’, while the rating on GENNY’s USD525 million senior unsecured notes due 2026 has been affirmed at ‘BBB-‘
Fitch expects revenue from Malaysia, which formed almost 35% of the group’s pre-pandemic consolidated total, to recover to over 75% of the 2019 level in 2022 and around 95% in 2023 (1H22: 31% of full-year 2019 revenue) following the lifting of pandemic-related restrictions since April 2022. The robust recovery should be aided by limited reliance on foreign visitors and additions to the new Genting SkyWorlds theme park by 4Q22.
Singapore to remain 35% below the 2019 level in 2022 and 10% lower in 2023, before reaching the same level in 2024. Singapore contributed around 35% of GENT’s pre-pandemic consolidated revenue. Las Vegas integrated resort benefits from being the first new property in the area in over a decade, although it also faces competition in a mature market. Fitch expects a gradual ramp-up towards an estimated EBITDAR of USD350 million by 2025, delayed by around nine months from previous expectations due to Covid-19 following the opening of the resort in June 2021.
Robust visitor inflow into Las Vegas will boost revenue and EBITDAR over the next two years, pushing the resorts hotel occupancy at almost 90% in 2Q22.