{"id":86434,"date":"2024-10-28T21:37:32","date_gmt":"2024-10-28T21:37:32","guid":{"rendered":"https:\/\/neclink.com\/index.php\/2024\/10\/28\/genting-singapore-credit-rating-supported-by-rws-says-moodys\/"},"modified":"2024-10-28T21:37:32","modified_gmt":"2024-10-28T21:37:32","slug":"genting-singapore-credit-rating-supported-by-rws-says-moodys","status":"publish","type":"post","link":"https:\/\/neclink.com\/index.php\/2024\/10\/28\/genting-singapore-credit-rating-supported-by-rws-says-moodys\/","title":{"rendered":"Genting Singapore Credit Rating Supported by RWS, Says Moody\u2019s"},"content":{"rendered":"


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\n Posted on: October 28, 2024, 04:34h.\u00a0\n <\/p>\n

\n Last updated on: October 28, 2024, 04:34h.\n <\/p>\n

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Momentum at Resorts World Sentosa (RWS) is supportive of Genting Singapore\u2019s solid credit rating, according to Moody\u2019s Investors Service.<\/p>\n

\"Resorts
Resorts World Sentosa. Operator Genting Singapore has a strong credit rating and a clean balance sheet. (Image: Mediacorp)<\/figcaption><\/figure>\n

In a new report, the ratings agency affirmed its \u201cA3\u201d grade and \u201cstable\u201d outlook on the gaming company, noting the duopoly status Genting has in Singapore is a driver of earnings growth and free cash flow. Resorts World Sentosa and Las Vegas Sands\u2019 (NYSE: LVS) Marina Bay Sands<\/a> are the two casino hotels in the city-state. Both operators are spending in significant fashion to enhance those properties.<\/p>\n

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GENS is expanding and refreshing its offerings at RWS in phases for a total cost of SGD6.8 billion, which includes the amount already spent,\u201d observed Moody\u2019s. \u201cAlthough the amount is significant, the capital expenditure will be spread across multiple years, peaking at an estimated SGD1 billion per annum between 2027 and 2029.\u201d<\/p>\n<\/blockquote>\n

The research firm added Genting Singapore should post modest earnings growth this year even with the headwind of some of its RWS room supply being offline due to renovations.<\/p>\n

Genting Singapore Balance Sheet Impressive<\/h2>\n

At a time when capital expenditures are necessary to bolster RWS amid increasing competition from the United Arab Emirates (UAE) and perhaps Thailand<\/a>, Genting Singapore has a significant advantage in the form of its balance sheet.<\/p>\n

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While \u201cclean\u201d balance sheets<\/a> in the gaming industry are usually seen as a relative term, Genting Singapore\u2019s fiscal position is pristine, indicating the operator will not be strained when it comes to improving its Singapore integrated resort.<\/p>\n<\/div>\n

\u201cThe company will likely fund its capital spending using internal cash sources. Consequently, GENS\u2019 credit metrics and liquidity will remain strong because the company has minimal debt and sizable cash holdings of SGD3.7 billion as of June 2024,\u201d added Moody\u2019s.<\/p>\n

Even if the gaming operator opted to head to capital markets to pay for some of its RWS-related spending, the cost of that financing would be low due to the company\u2019s A3 credit rating, which is well into investment-grade territory. Genting Singapore sports a higher credit rating than its parent company Genting Bhd.<\/strong><\/p>\n

Genting Singapore Faces Minimal Downgrade Risk<\/h2>\n

At A3, there\u2019s not much room for Genting Singapore to be upgraded as Moody\u2019s has just three grades above that. That doesn\u2019t imply the operator is at risk of a downgrade \u2013 a scenario that could easily be averted provided the company doesn\u2019t rapidly take on significant debt.<\/p>\n

\u201cWe could downgrade GENS\u2019 rating if there is a prolonged weakness in its operating performance, such that its earnings and credit metrics deteriorate; the company fails to maintain its 100% ownership of RWS; it increases debt at Resorts World at Sentosa Pte. Ltd., resulting in structural subordination risk; or its adjusted net debt\/earnings before interest, taxes, depreciation, and amortization (EBITDA) exceeds 1.0x,\u201d concluded Moody\u2019s.<\/p>\n

An upgrade would be possible if Genting Singapore could maintain a debt\/EBITDA ratio of below 3x and cash flow\/net debt above 30%-35%<\/strong>.<\/p>\n<\/div>\n


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Posted on: October 28, 2024, 04:34h.\u00a0 Last updated on: October 28, 2024, 04:34h. Momentum at Resorts World Sentosa (RWS) is supportive of Genting Singapore\u2019s solid<\/p>\n","protected":false},"author":1,"featured_media":86435,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[158],"tags":[],"class_list":["post-86434","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gambling"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/posts\/86434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/comments?post=86434"}],"version-history":[{"count":0,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/posts\/86434\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/media\/86435"}],"wp:attachment":[{"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/media?parent=86434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/categories?post=86434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/neclink.com\/index.php\/wp-json\/wp\/v2\/tags?post=86434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}