S&P Global Lowers Genting Group Outlook to Negative Due to High Spending on Expansion Projects

S&P Global Ratings has revised the Genting Group's outlook to negative, citing that earnings are unlikely to keep pace with spending over the next five years due to high-cost projects in New York and Singapore. While S&P has affirmed the credit ratings for Genting Bhd, Genting Malaysia Bhd, Genting New York LLC, and Resorts World Las Vegas LLC, it indicated a potential ratings downgrade could occur.

Significant investments are planned, including Genting New York LLC's gaming license expenditures, Resorts World Sentosa expansion, and Genting Energy's floating LNG facility. Total capital expenditures are projected to exceed MYR8 billion (US$1.96 billion) annually through 2030.

Genting Bhd's discretionary cash flow is expected to remain negative for three years, with debt rising towards MYR35 billion (US$8.57 billion) by 2028. S&P anticipates a reduction in dividends and a need for Genting Bhd to explore additional debt reduction strategies.