Moody's cuts Genting to Baa1

Moody's Investors Service said it downgraded the issuer and debt ratings of Genting Bhd. to Baa1 from A3.

The outlook is stable. This concludes the review initiated in January.

The downgrade reflects Moody's expectation that Genting's financial position is expected to weaken in future years as it invests in the Sentosa gaming project. It also takes into account an increased risk of providing more financial support to Star Cruises Ltd. in view of its fragile financial position and its heavy capital needs for its Macau project, the agency said.

Genting's ratings continue to reflect its sound financial profile, including strong capital structure and liquidity position. The ratings also are supported by Genting's monopoly position as Malaysia's sole land-based casino and its relatively diversified business portfolio, including stable and recurring cash flows generated from its power and plantation businesses, the agency said.

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