S&P downgrades Genting to ‘negative’ on US, Singapore investments

Summary

S&P Global Ratings has revised Genting Group’s outlook to “negative”, citing elevated risk from large, ongoing capital investments in New York and Singapore. Genting New York plans a $5.5bn upgrade to turn Resorts World New York City into a full-scale casino (including a $600m upfront licence payment). Genting Singapore is pressing ahead with a US$5.3bn RWS 2.0 expansion at Resorts World Sentosa, due by 2030.

S&P warns that Genting’s aggressive spending and a recent, partially successful attempt to privatise Genting Malaysia have increased the group’s risk appetite and could push leverage and reported debt materially higher through 2028. The ratings agency expects discretionary cashflow to remain negative for several years, potential dividend cuts, further asset disposals and the need for additional deleveraging measures.

Key Points

S&P moved Genting’s outlook to “negative” because of continuing and planned heavy capex in the US (New York) and Singapore (RWS 2.0).
Genting New York will invest $5.5bn to convert Resorts World New York City into a full casino and paid $600m for a 30-year licence.
Genting Singapore’s RWS 2.0 is a US$5.3bn expansion targeting completion by 2030 to restore visitation levels.
Genting Bhd boosted its stake in Genting Malaysia (GENM) to 73.13% in a bid to privatise GENM, seen by S&P as evidence of increased risk appetite.
S&P expects total capex to roughly double in 2026 vs 2025 and remain above RM8bn annually through 2030, with earnings unlikely to match spending.
S&P forecasts negative discretionary cashflow for the next three years and a rise in reported debt toward RM35bn by 2028 (from RM21bn in 2024), potentially prompting dividend cuts and further asset sales.

Context and relevance

This development matters to investors, lenders, suppliers and regional regulators. Genting is a major international operator with assets in Malaysia, Singapore, the US (including Resorts World Las Vegas) and the UK; a weakened credit profile could affect financing costs, partner confidence and M&A plans. The downgrade also signals how ratings agencies view aggressive capex and opportunistic capital moves (such as takeover attempts) when cashflow recovery is uncertain.

Why should I read this?

Because if you follow casino operators, regional gaming markets or corporate credit, this is the kind of move that changes who gets cheap debt, who gets deals and who might have to sell assets. Short version: big spends + slow cashflow recovery = messy balance sheets. Worth a two-minute read.

Author note

Punchy take: S&P’s action is a red flag. Genting is doubling down on big-ticket projects while leverage looks set to climb — that combo forces strategy shifts (dividend cuts, asset sales, more borrowing). If you have exposure to Genting or to creditors in the sector, pay attention.