“CreditSights reviews Genting Berhad and Genting Malaysia bonds, highlighting growth prospects, investment insights, and key risks.“
Pahang, 28th Mar 2025, 11.56am – CreditSights has released Part 2 of its Genting initiation report, offering bond relative value analysis, issuer and bond recommendations, and credit outlooks for Genting Berhad and Genting Malaysia.
Genting Berhad (GENT)
The research firm has initiated coverage on Genting Berhad (GENT, Baa2/BBB-/BBB) with a Market Perform rating. It views GENT’s sole 2027 bond as fairly valued compared to investment-grade casino peers Las Vegas Sands (LVS) and Sands China (SCL).
GENT benefits from broad geographical and business diversification, strong leverage metrics, and healthy liquidity. The company also has potential upside from a possible New York casino license win. However, CreditSights flags risks related to related-party transactions and a default history at a sister company. Structural subordination risks for the 2027 bond are offset by stable dividend income from Genting Singapore and a keepwell agreement with GENT.
Genting Malaysia (GENM)
For Genting Malaysia (GENM, NR/BBB-/BBB), CreditSights initiates coverage with an Outperform recommendation. It sees the company’s sole 2031 bond as undervalued compared to LVS, SCL, and parent company GENT.
GENM benefits from geographical diversification, a strong position in Malaysia, and growth potential from an anticipated New York casino license win. However, its leverage has temporarily increased due to front-loaded capital expenditure. Additionally, exposure to related-party transactions, particularly with struggling associate Empire Resorts (ERI), remains a concern.
Other Genting Entities
CreditSights is not providing recommendations on Genting New York (GENNY, NR/BB+/BBB-) and Resorts World Las Vegas (RWLV, NR/BB+/BBB-) but may cover them in a future report if financial disclosures are made available.
Relative Value Analysis
The analysis includes nine dollar bonds in the Genting bond complex. These consist of one bond from Genting Berhad (GENT 2027), one from Genting Malaysia (GENM 2031), and seven from various operating subsidiaries.
CreditSights has withheld recommendations for the following bonds:
- RWNY 2026: Most bonds were tendered back in October 2024.
- RWCATS 2026: Limited public financial disclosures and stressed bond levels.
- LLPLCA 2039: Lack of public financial data.
The report primarily focuses on the dollar bonds issued by GENT and GENM, providing insights for investors navigating the Genting bond market.
