Fitch affirms Genting ratings, speaks of expansion risk

Genting Bhd’s ambitious overseas expansion plans, including resorts in South Korea, Las Vegas and possibly Japan, may put a strain on finances, but the group generally has a history of pursuing expansion prudently, Fitch Ratings said.

The agency affirmed Genting’s Long-Term Foreign Currency Issuer Default Rating (IDR) and senior unsecured rating at 'A-', among the highest among Fitch-rated gambling companies. It also affirmed Genting Singapore’s ratings at the same level.

“Genting's ratings reflect its continued strong market position in the Malaysian and Singaporean gaming markets, its robust and improving operating margins, and low net financial leverage, it said.

Genting Singapore’s ratings are equalized with Genting's due to strong strategic and operational ties between the two entities, it said. “Sharing of brands and a history of providing financial support are also key attributes for the equalisation of the ratings.”

Genting's low net leverage, with negative net external debt on a consolidated basis which was negative 0.21x in FY13, also supports its rating.

 

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