The rating agency had stated in its June 29 commentary that Genting New York may put in an application for a full-scale casino licence in New York.

“We think the process for the award of three downstate licences, likely to be completed by H1 2024, will face intense competition among various operators, and Fitch has not yet factored it in Genting’s forecasts due to significant uncertainty,” it said.

Revenue to bounce back

On the group’s prospects, Fitch projects that Genting Bhd’s revenue will reach 85-90% of 2019 levels and pre-pandemic levels in the second half of next year (H2 2024).

The agency said that the lifting of Covid-19 restrictions has caused the number of visitors at Genting’s key assets in Malaysia and Singapore – which collectively contribute over 60% of the group’s earnings before interest, taxes, depreciation, and amortisation and restructuring or rent cost (Ebitdar) in 2022 – to rebound since April 2022.

It added that the reduction in the company’s workforce in Malaysia should offset wage inflation and contribute to improvement in Ebitdar margins compared to 2019.

“However, the Singapore Ebitdar margin is unlikely to recover to pre-pandemic levels in the next three years due to the gaming tax increase from Q2 2022,” it said.

Fitch estimates that the group’s Ebitdar net leverage will decline to 3.5 times in 2023 and further thereafter, from 4.1 times in 2022.

The Ebitdar net leverage is based on the proportionate consolidation of Genting’s three listed subsidiaries – GenM, Genting Singapore Ltd and Genting Plantations Bhd – and associate Genting Empire Resorts LLC.

As of noon, Genting Malaysia’s share price was down 1 sen or 0.41% at RM2.45, giving the group a market capitalisation of RM14.55 billion.