Moody’s raises concern over Genting leverage

    Credit rating agency Moody’s says Genting’s planned $4 billion Resorts World Las Vegas project may be negative to the group’s credit outlook as it boosts leverage levels and entails execution risk. The project is likely to increase net debt leverage to around 1.0 from 0.3 as of December 2013. “With a number of expansion projects already under way, the Las Vegas development increases our estimate of Genting’s annual capex to $2.2 billion to $3.4 billion from $1.5 billion to $2.2 billion 2014-16,” it said. “The project also entails execution risk because it is Genting’s first foray into Las Vegas, where gaming growth has slowed in comparison to Asia and major resort development has been absent over the past decade. As such, the EBITDA contribution of the initial phases of the project is uncertain,” it said.