Fitch Ratings said in a Monday note that Malaysian gaming giant Genting Berhad risks a ratings downgrade if it doesn’t effectively reduce its debt in the short-term, warning that the group’s leverage is high for its current “BBB” rating.
That’s despite Genting Bhd subsidiary GOHL Capital Holdings Limited proposing to issue perpetual securities in what is likely an effort to improve its balance sheet and provide a greater runway to get its finances back on track following a series of recent substantial investments. These investments include the acquisition of a much larger stake in Genting Malaysia, obtaining a full casino license in New York and the US$5 billion expansion of its Singapore IR Resorts World Sentosa.
