Research Update: Genting Malaysia Assigned 'BBB' Rating With Negative Outlook; Proposed Guaranteed Senior Unsecured Notes Rated 'BBB'

Genting Malaysia Bhd. (GENM) is an integral subsidiary of Genting Bhd. (GENT) with its branding and strategy closely aligned with the Genting group. We expect GENM to reach pre-pandemic levels of revenue and EBITDA only by 2022 because its key gaming and resort operations in Malaysia and the U.S. continue to be hit by the pandemic. On April 7, 2021, S&P Global Ratings assigned its 'BBB' long-term issuer credit rating on GENM. We also assigned our 'BBB' long-term issue rating to senior unsecured notes that GENM will guarantee. GENM Capital Labuan Ltd., a wholly owned subsidiary, will issue the notes. The negative outlook on GENM reflects that on GENT. A delayed recovery in the group's operations amid elevated investments have

...- Genting Malaysia Bhd. (GENM) is an integral subsidiary of Genting Bhd. (GENT) with its branding and strategy closely aligned with the Genting group. - We expect GENM to reach pre-pandemic levels of revenue and EBITDA only by 2022 because its key gaming and resort operations in Malaysia and the U.S. continue to be hit by the pandemic. - On April 7, 2021, S&P Global Ratings assigned its '###' long-term issuer credit rating on GENM. We also assigned our '###' long-term issue rating to senior unsecured notes that GENM will guarantee. GENM Capital Labuan Ltd., a wholly owned subsidiary, will issue the notes. - The negative outlook on GENM reflects that on GENT. A delayed recovery in the group's operations amid elevated investments have left it with limited rating headroom over the next 12-18 months....

Research Update