Fitch Ratings has now downgraded Genting Malaysia Bhd’s (GENM) Long-Term Issuer Default Rating (IDR) to ‘BBB-’ from ‘BBB’, following a similar downgrade of its 73.8%-owned parent Genting Bhd, as the group undertakes substantial investment in its New York casino expansion.
The outlook is Stable.
Fitch also downgraded the rating on GENM-guaranteed US$1 billion senior unsecured notes due 2031 to ‘BBB-’ from ‘BBB’.
The rating agency said GENM’s rating reflects its standalone credit profile of ‘bbb-’, which is now at the same level as Genting Bhd’s IDR.
Fitch considers Genting Bhd’s incentive to support GENM to be high, meaning that a weakening in GENM’s standalone profile would not by itself necessarily result in another downgrade, as its rating could be equalised with that of its parent.
Meanwhile, Fitch affirmed the ‘BBB-’ IDR of wholly-owned Genting New York LLC (GENNY) with a Stable outlook.
US$3.7 Billion More To Be Spent On New York Expansion
Fitch said GENNY remains on track to open 400 table games by January 2027, with the second phase of its expansion having commenced in July 2026.
Capital expenditure is expected to average around US$800 million annually over the medium term.
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 gaming licence.
The remaining US$3.7 billion is expected to be deployed over the next five years, which Fitch said would put pressure on GENNY’s credit metrics during the construction period.
GENNY owns and operates Resorts World New York City (RWNYC), which was awarded a full commercial casino licence in December 2025 to transform the property into a US$5.5 billion integrated resort.
New York Earnings Ramp-Up Slower Than Expected
While gaming revenue has increased sharply since table games opened in April 2026, Fitch has lowered its near-term earnings expectations because of higher start-up costs associated with the phased expansion.
GENNY’s 2026 EBITDA is now forecast at US$208 million, down from Fitch’s previous estimate of US$215 million.
However, EBITDA is projected to climb to around US$450 million by 2028 as additional gaming tables and slot machines are introduced and margins improve with scale.
Fitch said RWNYC benefits from a first-mover advantage in New York, alongside a dense population and high income levels within its surrounding catchment area.
Malaysia Operations Seen Growing 2%
For GENM’s Malaysian operations, Fitch expects performance to increase by 2% in 2026, recovering from a weak first quarter.
Revenue grew just 1% year-on-year during the first half of 2026, partly reflecting softer VIP gaming volumes.
Fitch expects earnings to remain subdued for the rest of the year as revenue from international tourists and domestic visitors continues to face challenges from high airfares and macroeconomic uncertainties.
GENM owns Resorts World Genting, which operates Malaysia’s only casino, while the group also has operations in the US and UK.
US Operations Reorganised
Fitch also highlighted GENM’s reorganisation of its US and Bahamas businesses, under which all its US properties, including GENNY and Empire Resorts Inc, have been placed under Genting America Inc (GENAI).
GENAI has raised US$2 billion in secured bank loans to refinance Empire’s US$300 million bond due in 2026, refinance GENNY’s existing US$775 million drawn term loan and fund capital expenditure at GENNY.
The restructuring has prompted Fitch to assess GENAI’s credit profile separately and evaluate the parent-subsidiary linkages between GENM, GENAI and GENNY when determining GENNY’s rating.
RM4 Billion Annual Capex Through 2028
Under Fitch’s base case, GENM’s revenue is forecast to record a 10% compound annual growth rate over 2026-2027, while its average EBITDA margin is projected at 27% between 2026 and 2028.
Annual capital expenditure is expected to average around RM4 billion between 2026 and 2028, while dividend outflows are forecast to average RM550 million annually.
Fitch expects the heavy investment programme to result in negative free cash flow over the next three years.
GENM had RM3.8 billion in cash and cash equivalents at end-June 2026, compared with short-term borrowings of around RM2.5 billion.
Fitch said a further downgrade of Genting Bhd or a perceived weakening in the parent’s strategic or operating incentives to support GENM could result in negative rating action on the company.
Conversely, positive rating action on Genting Bhd could lead to an upgrade of GENM.
