Research Update: Genting Bhd. Downgraded To 'BBB', Resorts World Las Vegas To 'BBB-' On Slow Recovery Prospects; Outlook Negative

We expect a slower recovery in Genting Bhd.'s Malaysia and Singapore gaming operations. The group's key U.S. subsidiary, Resorts World Las Vegas (RWLV), is also likely to ramp up slowly. Genting's capital expenditure is likely to remain high in 2020 and 2021 resulting in elevated leverage. On May 28, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Genting to 'BBB' from 'BBB+', and on RWLV to 'BBB-' from 'BBB'. At the same time, we lowered the long-term issue ratings on RWLV's senior secured debt and senior unsecured notes to 'BBB-' from 'BBB'. The negative outlook reflects our expectation that Genting's debt-to-EBITDA ratio will breach our downgrade trigger over the next 12-24 months, but recover to be below

...- We expect a slower recovery in Genting Bhd.'s Malaysia and Singapore gaming operations. The group's key U.S. subsidiary, Resorts World Las Vegas (RWLV), is also likely to ramp up slowly. - Genting's capital expenditure is likely to remain high in 2020 and 2021 resulting in elevated leverage. - On May 28, 2020, S&P Global Ratings lowered its long-term issuer credit rating on Genting to '###' from '###+', and on RWLV to '###-' from '###'. At the same time, we lowered the long-term issue ratings on RWLV's senior secured debt and senior unsecured notes to '###-' from '###'. - The negative outlook reflects our expectation that Genting's debt-to-EBITDA ratio will breach our downgrade trigger over the next 12-24 months, but recover to be below 3.0x by 2022....

Research Update