The outlook for the gaming industries in Singapore and Malaysia remains stable despite challenging economic conditions, Fitch Ratings says in a report.
The three companies — Genting Bhd, Genting Singapore and Marina Bay Sands, all have robust operating cash flows. The Genting companies maintain a net cash position, while MBS has been deleveraging, it says.
Fitch said the operating environment remains tough, with slower economic growth, lower tourism arrivals in Malaysia and growing competition from other destinations such as The Philippines and South Korea.
Fitch also said it believes that the Singapore government is unlikely to grant licenses to set up new casinos – due to the potentially higher frequency of problem gaming with the local population, and the muted outlook for the inbound tourism sector in Singapore.