Moody’s: Genting notes Baa1

Moody's Investors Service said it assigned a Baa1 issuer rating to Genting Overseas Holdings Ltd., a wholly owned subsidiary of Genting Bhd.

The agency also said it assigned a bond rating of Baa1 to the proposed benchmark guaranteed notes to be issued by GOHL Capital Ltd., a wholly owned subsidiary of Genting Overseas, which is the guarantor of the proposed notes.

Both Genting Overseas and GOHL Capital will be supported by support deeds between each other and Genting, Moody’s said, and the trustee of the proposed guaranteed notes.

The outlook is stable.

The proceeds of the notes will be lent to Genting Overseas through an intercompany loan, the agency said.

Genting Overseas, in turn, will use the proceeds for general corporate purposes which may include investing in the proposed development of the Resorts World Las Vegas project, Moody’s explained.

The ratings reflect the subsidiaries’ importance and linkage to Genting, the agency said, as a core contributor to the group's earnings responsible for more than 40% of consolidated EBITDA over the last five financial years.

The ratings also consider an expectation that Genting Overseas will likely receive strong support from the parent company, if needed, Moody’s said.

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