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CreditSights believes Genting Bhd has enough options on the table to handle a wave of upcoming debt repayments, even as the Malaysian conglomerate juggles large expansion plans and rating pressures. In a memo released Monday, analysts Jonathan Tan Jun Jie and Lakshmanan R. said they see “limited refinancing risk” for Genting’s maturities over the next 2 years, pointing to cash-rich subsidiaries, diversification, and potential asset sales as key buffers.
Large Maturities Across Bonds and Loans
According to the research note, the Genting group faces “sizable debt maturities” this year and in 2027. These include a $1.5 billion bond under Genting Overseas Holdings Ltd (GOHL), a $300 million bond linked to Empire Resorts, $665 million in term loans tied to Resorts World Las Vegas in the US, and MYR3.8 billion (around $968.1 million) in assorted retail bonds. GOHL is the holding company for Genting’s stake in Genting Singapore Ltd, which operates Resorts World Sentosa in Singapore.
CreditSights argued that Genting has multiple funding avenues to draw on as these obligations come due. One of the most important, in its view, is Genting Singapore’s strong balance sheet. The analysts pointed out that at the end of the first half of last year, Genting Singapore had a strong net cash position of about SGD3.3 billion (approximately $2.5 billion). Taking this into consideration, the analysts felt that the company could decide to pay a special dividend to provide extra funds to the group if required.
Expansion Moves Add Pressure to Credit Metrics
The memo also highlighted how Genting’s recent strategic moves are weighing on its credit profile. Towards the end of 2025, Genting Bhd approached the 75.0 percent mark of ownership of Genting Malaysia Bhd, which is the listed company that operates Resorts World Genting in Malaysia. On the other hand, a Genting Malaysia subsidiary, Genting New York LLC, won a downstate New York casino license in the US, which will help the company undertake a massive expansion in the country.
CreditSights warned that Genting’s increased stake in Genting Malaysia and its commitment to backing the new New York casino project could significantly weaken Genting Bhd’s credit metrics and increase the risk of rating downgrades at S&P Global Ratings and Fitch Ratings. The firm pointed out that this dynamic has “already played out at Moody’s”, referring to an earlier downgrade by that agency tied to higher debt and a slower earnings recovery. Even so, CreditSights reiterated that it sees “limited refinancing risk” for Genting’s 2027 bond, given the range of options the group can still tap.
Genting Malaysia’s Wider Spread and Fallen Angel Risk
In assessing Genting Malaysia specifically, CreditSights said its bonds “should trade wider” than those of some peers, signaling that investors may demand a higher yield to compensate for perceived risk. The analysts cited several reasons: a weaker credit outlook driven by the front-loaded $5.5 billion New York expansion, ongoing governance concerns, and exposure to “fallen angel” risk at S&P, the term used when a bond is cut from investment grade to junk status as an issuer’s finances deteriorate.
These factors, they argued, outweigh positives such as Genting Malaysia’s decent geographical diversification and the increased stake by Genting Bhd, which in theory boosts the chances of parental support for the heavy New York capital spending. Still, CreditSights believes Genting has time to improve its metrics. The analysts said they expect the group can lift its funds from operations-to-net debt ratio back above S&P’s 20 percent downgrade trigger, provided certain steps are taken.
Asset Sales and New York Earnings as Key Supports
One option flagged by CreditSights is the potential sale of unused land in Miami, which they believe could fetch more than $1 billion. A transaction of that scale would help reduce net debt and support the funds-from-operations ratio that rating agencies are watching closely. The analysts also pointed to Genting’s broad geographical and business diversification outside of gaming, and their expectation that earnings will improve at the Singapore, UK, and Las Vegas units over time.
Looking ahead, CreditSights said it expects Phase 1 of the New York expansion to start contributing strongly to earnings by the second half of 2026. That additional cash flow would help ease pressure on leverage metrics, offsetting some of the pain from the front-loaded capex. Taken together, access to Genting Singapore’s cash, potential asset disposals, a wide operating footprint, and expected earnings growth, the firm concludes that while Genting faces real rating and leverage challenges, it is still positioned with enough tools to manage its upcoming maturities without major refinancing stress.
Source: GGR Asia
