Fitch Ratings has downgraded Genting Bhd’s Long-Term Issuer Default Rating (IDR) to ‘BBB-‘ from ‘BBB’, citing expectations that the group’s leverage will remain elevated over the next three years as substantial spending on its Singapore and New York expansion projects weighs on its financial profile.
Fitch also downgraded wholly-owned Genting Overseas Holdings Ltd (GOHL) to ‘BBB-‘ from ‘BBB’, while Resorts World Las Vegas LLC (RWLV) was lowered to ‘BB+’ from ‘BBB-‘. The outlooks on all three ratings are Stable.
The rating agency expects Genting’s proportionately consolidated EBITDA net leverage to remain above 4.0 times over the next three years, with deleveraging slowed by heavy capital expenditure and a slower-than-expected earnings ramp-up at Genting New York LLC (GENNY).
High start-up operating costs at the New York operation and a more gradual recovery across Genting’s other gaming businesses are also expected to weigh on the pace of balance-sheet improvement.
Fitch expects leverage to decline below 3.5 times in 2029, although the pace will depend significantly on GENNY’s earnings ramp-up.
New York Expansion To Require Another US$3.7 Billion
GENNY is expected to spend an average of around US$800 million annually over the medium term following the award of its New York licence.
Of the remaining US$4.4 billion pledged for the expansion, about US$700 million has been spent to date, including US$500 million for the licence fee. The remaining US$3.7 billion is expected to be deployed over the next five years, putting pressure on GENNY’s credit metrics during construction.
Genting Singapore Ltd is simultaneously undertaking its Resorts World Sentosa 2.0 expansion, with about S$4 billion of committed capital expenditure remaining through 2030. Fitch expects the spending to result in negative free cash flow during the expansion phase.
At group level, Fitch forecasts Genting’s annual capital expenditure to average RM9.2 billion between 2026 and 2028. It also expects negative free cash flow averaging RM4 billion annually over the same period.
New York Earnings Expected To Ramp Up
Despite the near-term pressure, Fitch expects earnings from Genting’s New York operation to strengthen as the casino ramps up.
GENNY’s EBITDA is forecast to reach US$208 million in 2026, slightly below Fitch’s previous US$215 million estimate because of higher start-up operating costs.
By 2028, Fitch expects EBITDA to increase to around US$450 million, supported by additional gaming tables and slot machines as well as improving margins as operating costs normalise.
Recovery elsewhere is expected to be more gradual. Fitch forecasts flat gaming revenue for Genting Singapore in 2026 as hotel and casino renovations continue, while Genting’s Malaysian properties are expected to record muted revenue growth amid high travel costs and macroeconomic uncertainties.
RWLV’s EBITDA, meanwhile, is forecast to increase to about US$160 million in 2026, supported by the expanded Las Vegas Convention Center.
Revenue Seen Growing 6.3% Through 2028
Under its base case, Fitch forecasts Genting’s consolidated revenue to grow at a compound annual rate of 6.3% between 2026 and 2028, with its average annual EBITDA margin improving to 29% from 25% in 2025.
Average dividend outflows, excluding payments to non-controlling interests, are projected at around RM270 million annually over the three-year period.
Fitch said Genting has historically maintained an investment-grade credit profile supported by high-quality assets, its position in Malaysia’s gaming market, geographic diversification and cash flows from non-gaming businesses.
However, the group’s more aggressive investment programme has increased pressure on its financial profile, leading to the rating downgrade.
Genting had around RM19 billion in consolidated cash and cash equivalents at end-2025 and more than RM18 billion at end-June 2026, compared with approximately RM19 billion of debt maturities falling due between 2026 and 2028.
Fitch said further negative rating action could occur if Genting’s EBITDA net leverage remains above 4.5 times for an extended period, while an upgrade could be considered if leverage is sustained below 3.5 times.
