Resorts World Las Vegas LLC

Overview Key strengths Key risks Strong commitment, and willingness to support, from parent company Genting Bhd. (GENT) Limited operating track record. Swift recovery in Las Vegas' gaming market towards pre-pandemic levels of operations. Single asset concentration. Management team's experience in large casino developments. Operations in a highly competitive market. As a wholly owned subsidiary of GENT, RWLV receives comprehensive support from the group. That support includes equity to front-load its construction project, and a debt-service funding agreement for up to two years from meeting the minimum facilities, as defined by the banks, dated September 2021. We therefore assess RWLV as a highly strategic subsidiary of GENT, resulting in the rating to be one notch below that on the parent. RWLV

...Resorts World Las Vegas LLC (RWLV) will receive strong support from GENT under almost all foreseeable circumstances. As a wholly owned subsidiary of GENT, RWLV receives comprehensive support from the group. That support includes equity to front-load its construction project, and a debt-service funding agreement for up to two years from meeting the minimum facilities, as defined by the banks, dated September 2021. We therefore assess RWLV as a highly strategic subsidiary of GENT, resulting in the rating to be one notch below that on the parent. RWLV will contribute meaningful earnings to the group from 2022 and onwards. RWLV opened its integrated resort in June 2021 as scheduled, with no cost overrun, and its operations are already profitable. As of March 2022, visitor numbers to RWLV jumped around 50% year-on-year, reaching 90% of pre-pandemic March 2019 levels. Hotel occupancy rates also improved to 80.6%, which compares with March 2021's 55.5% and pre-pandemic March 2019's 91.5%. In 2022,...

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