S&P Global Ratings has revised the outlook for Genting Group companies to negative, warning that incremental earnings are unlikely to keep pace with spending over the next five years due to high-cost expansion projects in New York and Singapore.
While the agency has affirmed the issuer and issue credit ratings for group entities Genting Bhd, Genting Malaysia Bhd, Genting New York LLC and Resorts World Las Vegas LLC, it added that a ratings downgrade could also be on the cards given its high capital expenditure and growth priorities.
In a Wednesday note, S&P observed that several Genting subsidiaries will undertake heavy investments over the coming years period, including Genting New York LLC’s spending after it secured a full gaming New York license, Genting Singapore’s Resorts World Sentosa expansion and Genting Energy Ltd’s investments in a floating liquefied natural gas facility.
