Fitch Ratings expects Genting’s Resorts World New York City casino project to become a major contributor to the company’s earnings, forecasting EBITDA of around US$450 million by 2028. However, the ratings agency has downgraded several Genting entities due to higher capital commitments linked to expansion projects in New York and Singapore.
The rating action highlights the financial balance facing large casino developments: significant long-term revenue potential alongside increased short-term borrowing pressure.
Key Facts
| Category | Details |
| Company | Genting Berhad |
| U.S. Property | Resorts World New York City |
| Rating Agency | Fitch Ratings |
| Forecast EBITDA | Approximately US$450 million by 2028 |
| New York Expansion Commitment | Approximately US$5.5 billion |
| Main Issue | Higher leverage from expansion spending |
Fitch Downgrades Genting Ratings Over Expansion Costs
Fitch lowered Genting Berhad’s Long-Term Issuer Default Rating from BBB to BBB-, while also reducing ratings for Genting Overseas Holdings Limited and Resorts World Las Vegas LLC.
According to Fitch’s assessment, Genting’s debt reduction is expected to progress slowly because of continued investment requirements.
The agency identified expansion commitments at:
- Resorts World New York City.
- Resorts World Sentosa in Singapore.
as major factors affecting the company’s credit metrics.
Resorts World New York City Expansion Drives Future Growth Expectations
Despite the downgrade, Fitch expects the New York casino development to become a significant earnings contributor.
The agency forecasts that Resorts World New York City could reach approximately US$450 million EBITDA by 2028 as the property expands its gaming offering and operating costs stabilize.
Fitch stated that the forecast assumes additional gaming capacity, including more tables and slot machines, alongside improving margins as startup costs decrease.
The property benefits from its location in New York, including access to a large population base and high-income consumer market.
New York Casino Expansion Comes With Significant Capital Requirements
Genting has committed approximately US$5.5 billion toward the Resorts World New York City expansion.
The company is also investing approximately US$5 billion into Resorts World Sentosa expansion and upgrades in Singapore.
Fitch expects Genting’s annual capital expenditure to remain around US$800 million over the medium term, creating pressure on free cash flow and leverage levels.
What the Development Means for the U.S. Casino Market
The Resorts World New York City project reflects the continued growth of large integrated casino developments in major U.S. markets.
New York has attracted significant attention from casino operators because of its population density and potential customer base.
However, the Genting situation also demonstrates the financial challenges associated with large casino projects, where operators must balance:
- Construction spending.
- Regulatory requirements.
- Debt levels.
- Long-term revenue expectations.
Impact on Players and Operators
For players, the development could eventually expand casino capacity in the New York market if the planned expansion progresses.
For operators, the project represents competition for market share in one of the largest metropolitan areas in the United States.
For investors and industry observers, Fitch’s downgrade highlights the importance of managing expansion costs while pursuing future growth.
Current Status
Genting’s New York casino expansion remains a major growth project for the company, with Fitch forecasting significant future EBITDA contribution by 2028.
However, the ratings downgrade shows that the financial impact of expansion spending remains an important factor for the company’s credit profile.
Future developments will depend on construction progress, operational performance, and Genting’s ability to manage leverage while completing its expansion plans.
FAQs
Resorts World New York City is a casino property operated by Genting that received a full casino license and expanded its gaming offering with table games.
Fitch cited increased capital commitments and higher leverage expectations due to major expansion projects in New York and Singapore.
Fitch forecasts Resorts World New York City could generate approximately US$450 million EBITDA by 2028.
According to Fitch’s assessment, Genting has committed approximately US$5.5 billion toward the Resorts World New York City expansion.
