RAM Ratings has confirmed the loan program ratings and prior ratings of Genting Malaysia Berhad and Genting Berhad due to their “diversified gaming portfolio” and “strong market position.”
“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,” according to a dispatch from RAM Ratings analysts.
According to the description, “Genting’s strong market position, which includes a diversified gaming portfolio,” supports the AA1/Stable/P1 ratings. The corporation is a leader in video gaming machines in the northeastern United States and has a monopolistic presence in Malaysia and Singapore.
Resorts World Genting, Malaysia
Resorts World Sentosa, Singapore
Resorts World NYC, USA
The rating agency also noted that Genting’s holdings in real estate, oil and gas, plantations, and power production increase its diversity.
Another important asset of Genting is its liquidity, which as of June 2024 stood at RM25.65 billion ($6.17 billion) in cash and cash equivalents versus RM3.32 billion ($798 million) in short-term obligations. RAM Ratings anticipates that over the next three years, Genting’s operational performance will continue to be good despite increasing levels of net debt.
Genting’s financial performance for the fiscal year that ended in December 2023 were better than expected. In particular in Singapore and Malaysia, which profited from a pick-up in tourism, the company’s leisure and hospitality businesses saw growth, propelling its revenue rise to RM27.12 billion ($6.52 billion), up 21.1 percent.
Lower product prices resulted in a decline in revenue for the plantation and oil and gas industries, although these losses were somewhat offset by an increase in revenue for the electricity division.
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