The rating on Genting Bhd. reflects its firm market position in the resort and gaming business, increasing revenue and earnings diversity, and intermediate financial risk profile. These factors are tempered by potential competitive threats from expanding regional gaming markets, operating and financial challenges from its cruise business, and the single-site risk of its gaming business. Genting is a Malaysia-based investment holding company with a market capitalization of about Malaysian ringgit (RM) 14 billion (US$3.8 billion). Leisure and hospitality operation is the key profit generator, contributing two-thirds of group earnings in the past three years. Although Genting's cruise business is not consolidated into its accounts, as the company has an effective ownership of only 20.8% in Star Cruises Ltd. (BB/Watch Neg/--),
