Fitch revises Genting view to negative

Fitch Ratings said it revised the outlooks for Genting Bhd. and the wholly owned subsidiaries, Genting Overseas Holdings Ltd. and Resorts World Las Vegas LLC to negative from stable and affirmed their issuer ratings at BBB.

The outlook revision reflects rising risks around Genting’s ability to bring down leverage closer to 3x by end-2023. The volatile financial markets constrain Genting’s ability to do this in a timely manner, even though we still believe the company is committed to a deleveraging arc that is in line with its rating,” Fitch said in a press release.

The outlook captures the possibility of a much slower gaming recovery than the agency’s current forecast such that Genting’s leverage is elevated for an extended period. Fitch said the slower recovery might result from recurring waves of infection, leading to intermittent border closures and continued strict social distancing.

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