Both Genting Berhad and Genting Malaysia Berhad have seen their previous ratings reaffirmed by RAM Ratings, along with their debt programme ratings, thanks to a ‘strong market position’ and ‘diversified gaming portfolio’.
In a dispatch, RAM Ratings analysts noted that “Genting Malaysia’s ratings align closely with Genting Berhad’s due to their strong relationship and the expected support from the parent company when needed.”
The AA1/Stable/P1 ratings were described as being supported by “Genting’s strong market position, which includes a diversified gaming portfolio.” The company has a monopolistic presence in Malaysia, a duopoly in Singapore, and is a leader in video gaming machines in the northeastern United States.
Resorts World Genting, Malaysia
Resorts World Sentosa, Singapore
Resorts World NYC, USA
Additionally, Genting’s interests in plantations, power generation, property, and oil and gas add to its diversification, the rating agency added.
With RM25.65 billion ($6.17 billion) in cash and cash equivalents against RM3.32 billion ($798 million) in short-term debts as of June 2024, Genting’s liquidity is another key strength. Despite rising net debt levels, RAM Ratings expects Genting’s operational performance to remain strong over the next three years.
For the fiscal year ending December 2023, Genting’s financial results exceeded expectations. The company’s revenue grew by 21.1 percent to RM27.12 billion ($6.52 billion), largely driven by growth in its leisure and hospitality segments, particularly in Singapore and Malaysia, which benefited from a rebound in tourism.
Although revenues from the plantation and oil and gas sectors dropped due to lower product prices, these losses were partially offset by an increase in income from the power division.
