Fitch Ratings has affirmed Genting Berhad’s Long-Term Foreign-Currency Issuer Default Rating (IDR) and unsecured rating at ‘A-’, according to a press release.
The ratings agency has also affirmed IDRs on Genting Singapore at ‘A-’, with both outlook at ‘stable’.
“Genting’s ratings reflect its continued strong market position in the Malaysian and Singaporean
gaming markets and meaningful diversification in the oil palm plantations and energy sectors. Genting’s leisure and hospitality business, which includes its gaming, hotel and theme park businesses, accounted for 81 percent of consolidated EBITDA in 2015,” said the ratings firm.
Fitch also says its ratings represent its monopoly position in Malaysia and its 40 percent market share in the Singapore market.
At the same time, in FY15 and 1Q16, “GENS reported declining revenues, lower EBITDA margins, deteriorating performance of its VIP gaming business, and impairment of credit extended to its VIP customers. These adverse developments were partially offset by the relatively stable performance of its mass-market gaming business,” it added.
Last month, Morgan Stanley said Genting Malaysia earnings will see limited impact from oversupply in the region, as earnings have traditionally been driven by mass players.
“Based on our forecast, mass/ premium mass players will continue to contribute 55 percent of the revenue. Currently, 70 percent of Genting Malaysia visitors are day- trippers and this could increase with the new cable car system,” said the brokerage at the time.