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Fitch Ratings has downgraded Genting Berhad’s long-term issuer default rating to BBB- from BBB, citing heavy capital spending on casino expansion projects in New York and Singapore.
For New York, the key issue is the scale and pace of investment at Resorts World New York City. Fitch said Genting New York is expected to spend about $800 million a year over the medium term on the property’s $5.5 billion transformation, while earnings there are now expected to ramp up more slowly than previously forecast.
Resorts World New York City is a major part of the credit story
Fitch said Genting’s proportionately consolidated EBITDA net leverage ratio is likely to stay above 4.0 times over the next three years and not fall below 3.5 times until 2029. It also forecast average annual capital expenditure of MYR9.2 billion from 2026 through 2028, alongside average negative free cash flow of MYR4 billion per year.
At Resorts World New York City, the agency lowered its 2026 EBITDA forecast to $208 million from $215 million. Even so, Fitch expects Genting New York EBITDA to reach about $450 million by 2028.
The report said roughly $700 million of the $4.4 billion previously remaining under the New York investment commitment has already been deployed, including $500 million for the casino license. The remaining $3.7 billion is expected to be spent over the next five years.
What to watch in New York
Fitch said Resorts World New York City is on track to operate 400 table games by January 2027. It also noted that the project’s second phase began in July.
For readers following New York’s casino market, the downgrade does not change the expansion timeline outlined by Fitch, but it does show how heavily the project is weighing on Genting’s balance sheet. The agency also noted that Genting Malaysia has reorganized its US and Bahamas assets under Genting America Inc., which has secured $2 billion in bank facilities to refinance existing debt and help fund the New York expansion.
Beyond New York, Fitch said Genting still faces major spending commitments in Singapore, where about SG$4 billion remains under the Resorts World Sentosa 2.0 expansion through 2030.
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Source: As reported by Viviana Chan.
