Malaysian gaming and plantations group Genting Bhd is facing increased pressure on its credit profile as major expansion projects and weaker-than-expected performances at several properties raise concerns over its investment-grade rating.
S&P Global Ratings said Genting is at risk of becoming a “fallen angel” if earnings weakness continues and the company cannot take sufficient measures to protect its financial position. The company currently holds a “BBB-” rating with a negative outlook, leaving it one step above speculative grade.
The ratings agency said the group’s challenges stem from underperformance at several casino operations, including Genting Singapore’s Resorts World Sentosa, Genting New York’s Resorts World New York City and Resorts World Las Vegas.
At the same time, Genting is committing significant capital toward expansion plans. The group is investing US$5.5 billion into Resorts World New York City through 2030 after receiving a full casino license, while Resorts World Sentosa is undergoing a US$5 billion expansion.
Expansion Spending Creates Credit Challenges
S&P said Genting’s financial metrics remain under pressure because of the combination of weaker operational results and elevated spending commitments.
The ratings agency expects Genting’s funds from operations (FFO) to debt ratio to remain around 15 percent to 17 percent through 2028, below its 20 percent downside threshold.
“The group has no more buffer for a further downward surprise to operational earnings. Its credit metrics are diverging further from [the] downside trigger, and as such, making near-term recovery seem increasingly unlikely.”
S&P lowered its EBITDA expectations for Genting after the company’s first-half 2026 results came in below its projections. The shortfall was mainly linked to Genting Singapore, Genting New York and Resorts World Las Vegas.
Despite these concerns, S&P acknowledged some positive developments. EBITDA performance at Resorts World Sentosa and Resorts World Las Vegas improved during the June 2026 quarter, while Resorts World New York City showed progress during its ramp-up period.
The agency said it needed additional visibility into the recovery of Genting’s key businesses over the next six to 12 months before reassessing the group’s outlook.
“In particular, we want to see a few more quarters of ramp-up at Genting New York’s Resorts World New York City and the sustainability of RWLV’s performance, since these could mitigate prolonged weakness at Genting Singapore.”
Fitch Also Lowers Genting Rating
Fitch Ratings has separately downgraded Genting Berhad’s long-term issuer default rating from “BBB” to “BBB-” while maintaining a stable outlook.
Fitch cited heavy capital spending in New York and Singapore, slower growth at Resorts World New York City and a gradual recovery across the group’s gaming operations as key reasons behind the downgrade.
The agency expects Genting’s average annual capital expenditure between 2026 and 2028 to reach MYR9.2 billion (US$2.27 billion). During the same period, Fitch forecasts average negative free cash flow of MYR4 billion (US$988.7 million) annually.
Resorts World New York City remains a major factor in Genting’s future financial performance. Fitch expects Genting New York to spend around US$800 million annually on the property’s US$5.5 billion transformation project.
Fitch reduced its 2026 EBITDA forecast for Genting New York to US$208 million from US$215 million due to higher startup operating costs. However, the agency expects EBITDA to increase to approximately US$450 million by 2028 as the venue expands its gaming capacity.
The second phase of the Resorts World New York City expansion began in July, with the property expected to operate 400 table games by January 2027.
Resorts World Sentosa Performance Remains a Concern
S&P described the weakness at Genting Singapore as “structural” and said a quick recovery would be difficult.
Resorts World Sentosa faces competition from Marina Bay Sands, while ongoing renovation work across the property has affected visitor traffic and operations.
S&P expects Genting Singapore’s earnings to remain under pressure for several quarters, although performance could gradually improve as renovations continue.
The Singapore operation contributes approximately 20 percent to 30 percent of Genting’s group EBITDA, meaning continued weakness could affect the parent company’s credit position unless other businesses deliver stronger results or Genting takes steps to reduce debt.
S&P also highlighted possible measures that could support Genting’s balance sheet, including selling non-core land assets in Miami, issuing additional hybrid securities worth up to US$1.6 billion, or reducing dividend payments.
According to Inside Asian Gaming, the agency warned that further earnings deterioration or debt-funded acquisitions could lead to another downgrade.
“We could decide to downgrade the group if earnings weakness is prolonged and it has insufficient mitigants to avert credit deterioration. Any unexpected debt-funded acquisitions that would further derail the group’s credit quality could lead to a downgrade.”