Moody’s Ratings has placed the issuer ratings of Genting Berhad, Genting Overseas Holdings Limited, and Genting Singapore Limited under review for downgrade, warning that Genting Berhad’s proposed acquisition of the remaining shares in Genting Malaysia Berhad could significantly strain the group’s financial strength.
The review affects Genting Berhad’s Baa2 issuer rating, Genting Overseas Holdings’ Baa2 issuer rating, and Genting Singapore’s A3 issuer rating, all of which previously carried a stable outlook. Moody’s also placed on review the Baa2 backed senior unsecured rating of the notes issued by Genting Overseas Holdings’ subsidiary, GOHL Capital Limited.
The credit review follows Genting Berhad’s announcement of a conditional voluntary cash offer of MYR2.35 ($0.49) per share to acquire the remaining 50.6 percent of Genting Malaysia it does not already own. The deal, valued at up to MYR6.74 billion ($1.6 billion), would be largely funded by as much as MYR6.3 billion ($1.5 billion) in new debt and is expected to close within 60 days, subject to regulatory approval and shareholder acceptance.
“The review for downgrade reflects our expectation that Genting Berhad’s credit quality will weaken materially, depending on the level of acceptance of its proposed takeover offer for Genting Malaysia, which will be largely debt-funded,” said Anthony Prayugo, a Moody’s Ratings Analyst. “Genting Berhad’s credit metrics are already weak and the proposed transaction would delay any meaningful deleveraging.”
Moody’s estimates that Genting Berhad’s adjusted debt-to-EBITDA ratio could rise to about 5.1 times in 2025 if the acquisition is completed as planned, surpassing its 4.0x downgrade threshold. The agency previously expected Genting to improve its leverage through earnings growth from its gaming operations in Malaysia, Singapore, and Las Vegas, but now anticipates that the new debt will postpone recovery.
The agency also noted that Genting Berhad’s financial profile could deteriorate further if its subsidiary Genting New York LLC succeeds in winning one of three casino licenses in downstate New York, which could entail $5.5 billion in potential investment.
Despite the added risk, Moody’s said Genting Berhad maintains strong liquidity, supported by dividends from its operating subsidiaries and a well-managed debt maturity profile. The review is expected to conclude within 60–90 days and will assess the transaction’s final funding structure and the group’s plans to reduce leverage.
Genting Overseas Holdings’ and Genting Singapore’s ratings are being reviewed in line with the parent company’s downgrade watch. Moody’s emphasized that Genting Singapore’s standalone financial strength remains solid, underpinned by minimal debt and substantial cash holdings of SG$3.3 billion ($2.43 billion) as of June 2025.
