The stable credit rating of Genting Bhd, the Malaysian-listed parent of a group of casino companies worldwide, is partly due to capital expenditures (capex) being “limited since 2022,” S&P Global Ratings said in a note on Tuesday.

This came against the backdrop of the group’s existing businesses outperforming pre-pandemic performance in 2019.

S&P has confirmed Genting Bhd’s issuer credit rating as ‘BBB-/Stable’.

“Given the group’s limited spending going forward, we expect [Genting Bhd’s] credit quality to improve over the next two years, preventing the negative consequences of the “currently bidding” marketplace New York Games licensing process,” the rating agency said.

If Genting Group wins its Northern New York State license, S&P expects the brand to invest $5 billion in 2025, as Casino Group announced.

S&P said Genting Bhd Group’s operations “recovered and outperformed pre-pandemic levels, with revenue and EBITDA [earnings before interest, taxation, depreciation and amortization] reaching 125% and 112% of 2019 levels, respectively.”

“This was driven by improved operations in all regions, including Malaysia, Singapore and the United States,” it added.

The group’s U.S. Resorts World Las Vegas properties in Nevada “continued to increase” and S&P estimated its overall revenue contribution to be “about 15%.”

The agency describes Genting Bhd as the parent and managing body of Genting Group, with leisure and hospitality accounting for 85% to 90% of EBITDA in the years before the pandemic.

S&P said the group’s two “core” assets are Resorts World Genting, Malaysia’s only gaming property, and Resorts World Sentosa, a gaming resort in Singapore’s dual casino market.

Singapore-listed Genting Singapore Ltd. Resorts World Sentosa, the operator of Resorts World Sentosa, has pledged to invest S$6.8 billion ($5 billion) to upgrade and expand the complex.

Genting Singapore reported full-year net income of S$611.6 million in 2023, up 79.8% year-over-year.

In the United States, Genting Group acquired a 49% stake in Empire Resorts, a casino operator in upstate New York, in 2019. In June 2021, Genting Group launched the $4.3 billion Resort World Las Vegas Unified Resort.

The group also fully owns Genting New York LLC, the operator of Resorts World New York City, which is currently a downtown game operation, through the group’s Genting Malaysia Bhd entity.

S&P also provided a risk analysis for Genting Group’s sub-issuers in Tuesday’s update.

As of Dec. 31, Genting Malaysia’s capital structure consisted of approximately MYR 2.4 billion (US$503.4 million) in collateralized debt and MYR 11.6 billion in senior unsecured debt. Of the unsecured debt, MYR 2.6 billion was issued at the subsidiary level.

S&P, Genting Malaysia Issuer Credit Rating Same

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