Research Update: Genting Bhd., Resorts World Las Vegas Ratings Affirmed With Stable Outlook; Higher Investment Exhausts Headroom

Capital investment plans of Genting Bhd.'s Singapore subsidiary will weaken the parent's leverage. However, the leverage will remain commensurate with the 'A-' rating, in our view. We expect Genting Bhd.'s leverage to peak in 2020 owing to simultaneous capital spending in Singapore and Las Vegas, but improve in early 2021, because of the likely commissioning of the Las Vegas project. On April 12, 2019, S&P Global Ratings affirmed its 'A-' long-term issuer credit rating on Genting Bhd. We also affirmed the 'BBB+' preliminary long-term issuer credit rating on Genting Bhd.'s subsidiary Resorts World Las Vegas LLC (RWLV) and the 'BBB+' preliminary issue ratings on RWLV's notes and senior secured debt obligations. The stable outlook reflects our expectation that Genting Bhd.'s

...- Capital investment plans of Genting Bhd.'s Singapore subsidiary will weaken the parent's leverage. However, the leverage will remain commensurate with the 'A-' rating, in our view. - We expect Genting Bhd.'s leverage to peak in 2020 owing to simultaneous capital spending in Singapore and Las Vegas, but improve in early 2021, because of the likely commissioning of the Las Vegas project. - On April 12, 2019, S&P Global Ratings affirmed its 'A-' long-term issuer credit rating on Genting Bhd. We also affirmed the '###+' preliminary long-term issuer credit rating on Genting Bhd.'s subsidiary Resorts World Las Vegas LLC (RWLV) and the '###+' preliminary issue ratings on RWLV's notes and senior secured debt obligations. - The stable outlook reflects our expectation that Genting Bhd.'s debt-to-EBITDA ratio will revert to less than 1.5x by 2021 as capex tapers off and cash flows from new projects start ramping up. The outlook on RWLV reflects that on its parent....

Research Update