Moody's affirms Genting

Moody's Investors Service said it affirmed the A3 issuer and debt ratings of Malaysia-based Genting Bhd. The outlook is stable.

The affirmation follows subsidiary Genting Power China Ltd.'s announcement that it wants to acquire the remaining 73.8% stake in the Meizhou Wan coal-fired power plant in China's Fujian Province, as well as a 100% interest in the plant's project management company. The proposed acquisition, estimated to cost $155.3 million, is likely to be funded through the Genting group's surplus funds.

Moody's said the affirmation reflects the fact that Genting's large liquid funds - close to RM 6 billion at the end of 2005 - will provide it with sufficient flexibility to conduct the investment without materially impacting its financial fundamentals. Furthermore, the acquisition of the power plant will further support the group's recurring cash flow.

At the same time, Moody's noted that Genting and its affiliate, Star Cruises Ltd., have submitted a joint proposal to develop the Marina Bay integrated resort project in Singapore. The agency said a successful bid for the project may alter the business profiles of the companies, but whether any rating implications emerge would depend on the financing plan and the associated initiatives in risk management.

Net debt to EBITDA is below 0.5x and adjusted net leverage is around 6% to 7%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.