KUALA LUMPUR / NEW YORK, 10 September 2025 — Genting Bhd faces mounting financial pressure as slower-than-expected performance in Singapore and Las Vegas erodes its rating buffer, while its high-stakes bid for a New York casino licence presents both potential upside and significant event risk, according to S&P Global Ratings.
Funding Ratio Declines Despite Stable Outlook
S&P flags a modest downward shift in Genting’s funds-from-operations to debt (FFO/D) ratio, projected at 22%–24% through 2026, down from 23.5% in 2024. This decline is attributed to soft operating results in key markets, even as the conglomerate prepares for future growth. S&P forecasts a gradual earnings recovery beginning in 2026, particularly if SG and Las Vegas operations stabilise and capital investments yield returns.
Operational Drag in Key Resorts
In Singapore, Genting’s Resorts World Sentosa saw operating profits slip due to elevated costs from ongoing brownfield construction, and a temporary closure of its SEA Aquarium to accommodate development of the Oceanarium. In Las Vegas, macroeconomic uncertainty tempered hotel occupancy and gaming revenues, compounding the group’s performance headwinds.
A High-Stakes Bet in New York
Genting has formally submitted a proposal for a US$5.5 billion integrated resort and casino licence in Queens, New York. S&P emphasises that if the licence is approved, the scale of investment and resulting earnings will significantly influence Genting’s credit profile. However, if the bid is unsuccessful, the company may avert the costs of a major capital expenditure—but lose anticipated revenue upside.
“Our base-case assumes no financial contributions from the New York bid,” S&P noted, categorising the licence application as an event risk rather than a certainty.
Broader Strategic Implications
For Regional Stakeholders and Investors
- Credit Vulnerability Under Scrutiny
Slipping FFO/D ratios underscore heightened sensitivity in rating metrics. Investors and bondholders may recalibrate expectations if operational recovery underperforms. - Global Expansion vs Local Resilience
The New York bid reflects Genting’s ambition to cement itself in U.S. gaming markets. Success could transform its revenue profile, yet raises concerns about overexposure amid ongoing cost and demand volatility. - Project Execution and Capital Discipline
Rising construction costs and operational disruptions in Singapore highlight the challenges of greenfield expansion. Effective risk management and execution will be critical if Genting advances with its U.S. resort plans. - ASEAN and Beyond: A Cautionary Tale
For other regional conglomerates pursuing global ventures, Genting illustrates the balancing act of diversification, where ambitious overseas growth must be weighed against operational continuity and financial prudence.
