S&P cuts Genting

S&P said it lowered its long-term issuer ratings on Genting Bhd. (GENT) to BBB- from BBB, Genting Malaysia Bhd. (GENM) to BBB- from BBB, Resorts World Las Vegas LLC (RWLV) to BB+ from BBB- and Genting New York LLC (Genny) to BB+ from BBB-.

The agency also cut the issue rating on GENM to BBB- from BBB, senior unsecured rating on RWLV to BB from BBB-, and senior unsecured rating on Genny to BB+ from BBB-. Concurrently, S&P affirmed the BBB- ratings on RWLV's senior secured revolving facility and term loans.

A slower-than-expected recovery and uncertainties over the Covid delta variant on its effect on the recovery, led the agency to revise its forecast on the Genting group companies' EBITDA to reach pre-pandemic levels only in 2023, from the previous 2022.

“In our view, GENT's elevated debt levels and slower recovery have weakened its financial profile, as we forecast the group's debt to EBITDA to remain 6x-6.2x in 2021 and 3.1x-3.3x in 2022, and funds from operations (FFO) to debt of 19%-21% in 2022 and 26%-28% in 2023, which are beyond the threshold for the previous BBB rating,” S&P said in a press release.

The outlook is stable.

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