Research Update: Genting Group Companies Downgraded On Slower Recovery Prospects; Outlook Stable

The COVID-19 delta variant has triggered lockdowns and heightened social restrictions, materially affecting Genting's leisure and hospitality operations in Southeast Asia, especially in Malaysia and resulting in further delays in the recovery of the group's earnings. We now expect Genting's EBITDA to recover to pre-pandemic levels only in 2023 instead of 2022. Similarly, the group's debt to EBITDA ratio will remain above 3x until 2023, which is beyond the threshold of the previous 'BBB' rating. On Aug. 20, 2021, S&P Global Ratings lowered its long-term issuer ratings on Genting Bhd. (GENT) to 'BBB-' from 'BBB', Genting Malaysia Bhd. (GENM) to 'BBB-' from 'BBB', Resorts World Las Vegas LLC (RWLV) to 'BB+' from 'BBB-', and Genting New York LLC (GENNY) to

...- The COVID-19 delta variant has triggered lockdowns and heightened social restrictions, materially affecting Genting's leisure and hospitality operations in Southeast Asia, especially in Malaysia and resulting in further delays in the recovery of the group's earnings. - We now expect Genting's EBITDA to recover to pre-pandemic levels only in 2023 instead of 2022. Similarly, the group's debt to EBITDA ratio will remain above 3x until 2023, which is beyond the threshold of the previous '###' rating. - On Aug. 20, 2021, S&P Global Ratings lowered its long-term issuer ratings on Genting Bhd. (GENT) to '###-' from '###', Genting Malaysia Bhd. (GENM) to '###-' from '###', Resorts World Las Vegas LLC (RWLV) to '##+' from '###-', and Genting New York LLC (GENNY) to '##+' from '###-'. We also lowered our issue rating on GENM to '###-' from '###', senior unsecured rating on RWLV to '##' from '###-', and senior unsecured rating on GENNY to '##+' from '###-'. At the same time, we affirmed our '###-'...

Research Update