Fitch Ratings has downgraded Genting Berhad’s long-term issuer default rating, citing heavy capital spending on casino expansion projects in New York and Singapore, a slower earnings ramp-up in New York and a gradual recovery across the group’s other gaming operations.
The rating was lowered to ‘BBB-‘ from ‘BBB,’ with a stable outlook, placing the Malaysian gaming conglomerate at the lowest level of Fitch’s investment-grade category.
Fitch expects Genting’s proportionately consolidated EBITDA net leverage ratio to remain above 4.0 times over the next three years. The ratio is forecast to fall below 3.5 times in 2029, with the pace of deleveraging largely dependent on the performance of Resorts World New York City.
The rating agency forecasts average annual capital expenditure of MYR9.2 billion ($2.27 billion) between 2026 and 2028. Negative free cash flow is expected to average MYR4 billion ($988.7 million) per year over the same period.
Genting New York is projected to spend about $800 million annually over the medium term on the $5.5 billion transformation of Resorts World New York City. Of the $4.4 billion previously remaining under the investment commitment, approximately $700 million has been deployed, including $500 million for the casino license.
The remaining $3.7 billion is expected to be spent over the next five years. Fitch said the spending would place pressure on Genting New York’s credit metrics during construction.
Fitch lowered its forecast for Genting New York’s 2026 EBITDA to $208 million from $215 million due to higher start-up operating costs. EBITDA is expected to reach approximately $450 million by 2028 as the property adds more tables and slot machines and improves its operating margins.
A separate Fitch assessment said Resorts World New York City is on track to operate 400 table games by January 2027. The second phase of the expansion began in July.
Genting Malaysia has also reorganized its US and Bahamas operations under Genting America Inc. The holding company has secured $2 billion in bank facilities to refinance existing debt and help fund the New York expansion.
In Singapore, about SG$4 billion ($3.2 billion) of committed spending remains under the Resorts World Sentosa 2.0 expansion through 2030. Fitch forecasts flat gaming revenue at the property in 2026 as hotel and casino renovations continue.
Fitch expects revenue from Genting Malaysia’s domestic operations to rise by 2 percent in 2026. First-half revenue increased 1 percent year-on-year, with soft VIP gaming volume, high airfares and wider economic uncertainty expected to weigh on the business.
Resorts World Las Vegas, meanwhile, is expected to generate EBITDA of about $160 million in 2026, supported by the expanded Las Vegas Convention Center, which opened earlier this year.
