On Wednesday, just two days after a Genting subsidiary secured a full downstate New York casino licence, S&P Global Ratings revised its outlook on Malaysia-based Genting Group to negative, citing rising risks tied to major capital spending in both New York and Singapore.
Earlier in the week, New York gaming regulators granted Genting New York LLC a full commercial casino licence for Resorts World New York City in Queens. Under the approval, the subsidiary plans to invest $5.5 billion to upgrade the current video lottery terminal site into a full-scale casino featuring as many as 6,000 slot machines and 800 table games. Genting will also make an upfront payment of $600 million for a 30-year licence.
At the same time, Genting Singapore is moving forward with its US$5.3 billion expansion of Resorts World Sentosa, a project scheduled for completion in 2030. Known as RWS 2.0, the redevelopment includes a new waterfront lifestyle complex, two luxury hotels, a Minion Land theme park, and additional attractions aimed at returning visitor numbers to pre-pandemic levels. However, in November 2024, Singapore’s Gambling Regulatory Authority renewed Resorts World Sentosa’s licence for only two years, rather than the standard three, citing “unsatisfactory” performance between 2021 and 2023.
GENM takeover bid reflects ‘increased risk appetite’
In anticipation of a successful New York casino bid, Genting Bhd recently moved to privatise its subsidiary, Genting Malaysia (GENM). In a regulatory filing, the group said full control of the unit would provide “the financial strength and network to support the development” of its New York project.
By the 1 December takeover deadline, Genting had increased its ownership in GENM from below 50% to 73.13%. The offer, however, fell short of the 75% level required to privatise the company and remove it from Bursa Malaysia.
S&P Global Ratings raised concerns over Genting’s “heightened risk appetite,” noting that what it described as “opportunistic behaviour” reduces the predictability of the group’s leverage and could weaken it due to event-related risks.
The ratings agency added that any further attempt to privatise Genting Malaysia through additional borrowing to consolidate its US assets could delay improvements in leverage. S&P said the group would need to clearly demonstrate its commitment to greater transparency and debt reduction going forward.
S&P: Genting to double capex in 2026
S&P Global Ratings estimates that Genting’s total capital expenditure in 2026 will be roughly double the RM6 billion spent in 2025, and is expected to exceed RM8 billion per year through 2030. Under this outlook, the ratings agency said earnings are unlikely to grow fast enough to match the level of spending.
“We expect Genting’s discretionary cash flow to remain negative over the next three years,” S&P said. This is projected to push the group’s reported debt to nearly RM35 billion by 2028, up from RM21 billion in 2024. As a result, Genting’s leverage ratio could decline to below 20% through 2027.
In response to these pressures, S&P expects the group to cut dividend payouts and continue efforts to sell land holdings on Biscayne Bay in Miami. However, the agency cautioned that these steps may not be enough, adding that Genting Bhd will need to identify additional measures to reduce its debt burden.
Genting’s portfolio includes Resorts World Genting, its flagship resort near Kuala Lumpur; Resorts World Las Vegas in the US; and more than 30 regional casinos in the UK.
