Fitch Ratings has downgraded Malaysian gaming conglomerate Genting Berhad from BBB to BBB- with a stable outlook. The company now sits at the lower edge of investment grade due to high leverage driven by large-scale capital spending on casino resorts.
Fitch expects Genting's net debt to EBITDA to remain above 4.0 for the next three years. The ratio will not fall below 3.5 until 2029, with the pace depending on how Resorts World New York City performs. The group's average annual capital expenditure will reach MYR 9.2 billion ($2.27 billion) from 2026 through 2028. Negative free cash flow is forecast at MYR 4 billion ($988.7 million) per year.
Most of the strain comes from subsidiary Genting New York, which is spending around $800 million annually on a $5.5 billion transformation of Resorts World New York City. Of $4.4 billion in commitments, roughly $700 million has already been deployed, including $500 million for the casino licence. The remaining $3.7 billion is scheduled over five years. Fitch cut its 2026 EBITDA forecast for Genting New York to $208 million from $215 million, citing higher operating costs at launch. By 2028 the figure should reach $450 million as the gaming floor expands and margins improve. The property plans to operate 400 gaming tables by January 2027.
In Singapore, Resorts World Sentosa is continuing its 2.0 project with SG$4 billion ($3.2 billion) in commitments remaining through 2030. Fitch expects gaming revenue there to stay flat in 2026 due to hotel and casino renovations. Revenue from Genting's Malaysian operations should grow 2 per cent. Resorts World Las Vegas will contribute EBITDA of around $160 million, helped by the Las Vegas Convention Center expansion.
Genting America Inc. has secured $2 billion in bank lines to refinance debt and fund the New York project.
