KUALA LUMPUR - Moody's Investors Service has affirmed the Baa2 issuer ratings of Genting Bhd (GENB) and Genting Overseas Holdings Limited (GOHL), and the A3 issuer rating of Genting Singapore Limited (GENS), with a revised outlook to stable from negative.
The rating agency has also affirmed the Baa2 backed senior unsecured rating on the notes issued by GOHL Capital Limited, a wholly-owned subsidiary of GOHL. The notes are guaranteed by GOHL.
Moody's analyst Tay Yu Sheng said GOHL and GOHL Capital Limited are supported by a keepwell deed between GENB, GOHL, GOHL Capital Limited and the trustee of the guaranteed notes.
"The change in outlook to stable and ratings affirmation reflect our expectation that credit metrics across the Genting group of companies will improve over the next 12-18 months, supported by continued recovery in operating performance.
"For GENB, it will also benefit from full-year earnings contribution from Resorts World Las Vegas," he said in a statement today.
Tay said the group's plans to expand its New York gaming operations under Genting Malaysia Bhd might affect its credit quality.
However, such developments, including the timing and funding structure of the investment, ultimately hinge on the awarding of the casino licence, which remains uncertain at this point, he said.
Moody’s expects GENB's consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) to increase to around RM8.9 billion in 2023 from RM7 billion in the 12 months ended Sept 30, 2022.
The higher earnings reflect an ongoing recovery in the group's leisure and hospitality businesses, particularly in Malaysia and Singapore, where the pandemic and border restrictions eased last year, it said.
Moody's also expects GENB to maintain excellent liquidity on a standalone basis, supported by dividend cash flows from its operating subsidiaries and a well-managed debt maturity profile. - Bernama
The rating agency has also affirmed the Baa2 backed senior unsecured rating on the notes issued by GOHL Capital Limited, a wholly-owned subsidiary of GOHL. The notes are guaranteed by GOHL.
Moody's analyst Tay Yu Sheng said GOHL and GOHL Capital Limited are supported by a keepwell deed between GENB, GOHL, GOHL Capital Limited and the trustee of the guaranteed notes.
"The change in outlook to stable and ratings affirmation reflect our expectation that credit metrics across the Genting group of companies will improve over the next 12-18 months, supported by continued recovery in operating performance.
"For GENB, it will also benefit from full-year earnings contribution from Resorts World Las Vegas," he said in a statement today.
Tay said the group's plans to expand its New York gaming operations under Genting Malaysia Bhd might affect its credit quality.
However, such developments, including the timing and funding structure of the investment, ultimately hinge on the awarding of the casino licence, which remains uncertain at this point, he said.
Moody’s expects GENB's consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) to increase to around RM8.9 billion in 2023 from RM7 billion in the 12 months ended Sept 30, 2022.
The higher earnings reflect an ongoing recovery in the group's leisure and hospitality businesses, particularly in Malaysia and Singapore, where the pandemic and border restrictions eased last year, it said.
Moody's also expects GENB to maintain excellent liquidity on a standalone basis, supported by dividend cash flows from its operating subsidiaries and a well-managed debt maturity profile. - Bernama