Fitch Downgrades Genting Berhad Amid Heavy Capex
Fitch Ratings has downgraded the long-term issuer default rating of Genting Bhd to 'BBB-' from 'BBB', with Genting Overseas Holdings Ltd cut to the same level and Resorts World Las Vegas LLC lowered a further notch to 'BB+' from 'BBB-'. Fitch said the outlooks on all three are stable.
In its statement, Fitch said the downgrades 'reflect our expectation that Genting's proportionately consolidated earnings before interest, taxes, depreciation and amortisation (Ebitda) net leverage ratio will stay above four times for the next three years.'
The agency added that 'the pace of deleveraging' will be slow 'due to substantial capital expenditure (capex) to expand key properties, including those in Singapore and New York.' Genting Overseas Holdings' rating is equalised with Genting's own, while Resorts World Las Vegas sits one notch lower; both units are wholly owned by Genting.
Genting New York's Slow Ramp-Up
Fitch pointed to a slower-than-expected Ebitda ramp-up at Genting New York, driven by high startup operating costs, alongside a more gradual recovery across Genting's other gaming operations.
The agency now expects Genting New York's Ebitda to reach $208 million in 2026, slightly below its previous $215 million forecast, before climbing to around $450 million by 2028 thanks to online slots and tables to normalise margins.
Fitch said the property benefits from first-mover advantage in New York, a dense population base and high income flows in the surrounding market.
That recovery will come alongside continued heavy spending: Fitch expects Genting New York's capex to average around $800 million a year over the medium term following the award of its casino licence, with a further $3.7 billion to be deployed over the next five years, weighing on the property's credit metrics throughout construction.
Singapore's Resorts World Sentosa 2.0
Genting Singapore Ltd is separately rolling out its Resorts World Sentosa 2.0 expansion, with roughly S$4 billion in committed capex remaining until 2030.
Fitch expects negative free cash flow at the unit during the expansion phase, and forecasts flat gaming revenue for Genting Singapore in 2026 as it continues renovating hotel and casino areas to improve the customer experience.
Casino Games Hub
Why It Matters
The downgrade reflects a broader pattern across Genting's global portfolio: large, multi-year capital commitments in both of its flagship growth markets are outpacing near-term earnings recovery, keeping leverage elevated even as individual properties show improving fundamentals.
For an operator simultaneously building out a new US casino licence and a major Singapore expansion, Fitch's move signals that credit markets expect the deleveraging path to be measured in years, not quarters.
Fitch's own commentary frames the two projects as the twin drivers of the rating action: Genting New York's high startup costs weighing on near-term Ebitda, and Resorts World Sentosa's renovation-driven negative free cash flow through the rest of the decade. Both are treated as temporary drags rather than structural weaknesses, which is why the outlook on all three ratings remains stable rather than negative.
