Research Update: Genting Bhd. Affirmed At 'BBB', Resorts World Las Vegas At 'BBB-' With Limited Financial Headroom; Outlook Negative

We continue to believe Genting Bhd. will see recovery in its gaming monopoly and duopoly in Malaysia and Singapore, respectively. The addition of Resorts World Las Vegas LLC (RWLV) in the summer of 2021 will boost EBITDA in 2022 to 90%-95% of pre-COVID levels. The recovery of its Singapore market is weaker than we had expected, due to Genting's reliance on international tourism while border restriction remains tight. On Sept. 28, 2020, S&P Global Ratings affirmed its long-term issuer credit rating on Genting at 'BBB', and on RWLV at 'BBB-'. At the same time, we affirmed the long-term issue ratings on RWLV's senior secured debt and senior unsecured notes at 'BBB-'. The negative outlook reflects our expectation that Genting's debt-to-EBITDA

...- We continue to believe Genting Bhd. will see recovery in its gaming monopoly and duopoly in Malaysia and Singapore, respectively. The addition of Resorts World Las Vegas LLC (RWLV) in the summer of 2021 will boost EBITDA in 2022 to 90%-95% of pre-COVID levels. - The recovery of its Singapore market is weaker than we had expected, due to Genting's reliance on international tourism while border restriction remains tight. - On Sept. 28, 2020, S&P Global Ratings affirmed its long-term issuer credit rating on Genting at '###', and on RWLV at '###-'. At the same time, we affirmed the long-term issue ratings on RWLV's senior secured debt and senior unsecured notes at '###-'. - The negative outlook reflects our expectation that Genting's debt-to-EBITDA ratio will breach our downgrade trigger over the next 12-24 months driven by slow recovery in the Singapore market, but recover to below that trigger by 2022....

Research Update