Research Update: Genting Bhd. And Subsidiary Resorts World Las Vegas Downgraded On Increasing Leverage, Outlook Stable

We anticipate Genting Bhd.'s leverage to increase and cash flow adequacy to weaken over the next 12-18 months, given the company's aggressive expansion plans. We believe Genting will support the outstanding debt at newly acquired Empire Resorts Inc. to maintain its brand and reputation even as it expands its Singapore and Las Vegas properties. We include Empire's debt in our financial assessment of Genting. On Dec. 4, 2019, S&P Global Ratings lowered its long-term issuer credit rating on Genting to 'BBB+' from 'A-'. We also lowered our long-term issuer credit rating on subsidiary Resorts World Las Vegas LLC (RWLV) and the long-term issue ratings on the company's senior secured debt obligations and US$1 billion senior unsecured notes to 'BBB' from

...- We anticipate Genting Bhd.'s leverage to increase and cash flow adequacy to weaken over the next 12-18 months, given the company's aggressive expansion plans. - We believe Genting will support the outstanding debt at newly acquired Empire Resorts Inc. to maintain its brand and reputation even as it expands its Singapore and Las Vegas properties. We include Empire's debt in our financial assessment of Genting. - On Dec. 4, 2019, S&P Global Ratings lowered its long-term issuer credit rating on Genting to '###+' from 'A-'. We also lowered our long-term issuer credit rating on subsidiary Resorts World Las Vegas LLC (RWLV) and the long-term issue ratings on the company's senior secured debt obligations and US$1 billion senior unsecured notes to '###' from '###+'. We removed all the ratings from CreditWatch, where they were placed with negative implications on Aug. 15, 2019. - The stable outlook on Genting reflects our expectation that, despite the group's heavy investment plan, its debt-to-EBITDA...

Research Update