Fitch Ratings has lowered the long-term issuer default rating (IDR) of Genting Malaysia Bhd (GenM) from BBB to BBB-, reflecting a stable outlook for the company. The downgrade also applies to GenM's US$1 billion senior unsecured notes due 2031, which Fitch downgraded to BBB- from BBB. This move follows the downgrade of Genting Malaysia’s majority shareholder, Genting Bhd (GENT), whose long-term IDR was similarly reduced to BBB-.

Fitch noted that GenM’s standalone credit profile remains at BBB-, matching Genting Bhd’s rating. The agency emphasized Genting Bhd’s strong incentives to support GenM, suggesting that a weakening in GenM’s standalone profile alone would not necessarily result in a further downgrade, as its rating is expected to align with that of its parent company.

The rating for GenM’s fully owned subsidiary, Genting New York LLC, was affirmed at BBB- with a stable outlook. This rating aligns with Fitch’s internal assessment of Genting America Inc (Genai), which owns Genting New York outright. Fitch reported that Genting New York is progressing as planned, with an expected opening of 400 table games by January 2027 and a second phase of expansion scheduled to start in July 2026.

Fitch foresees continued significant capital expenditure, averaging around US$800 million annually over the medium term. Of the US$4.4 billion allocated for expansion, approximately US$700 million has already been spent, including US$500 million for the licensing fee. The remaining US$3.7 billion is expected to be deployed over the next five years, which Fitch indicates will place pressure on the credit metrics of Genting New York during the construction period.

Since table games were introduced in April 2026, gaming revenue has seen a sharp increase, indicating strong early demand. However, Fitch revised its earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast downward for 2026, estimating US$208 million compared with the previous forecast of US$215 million. The revision reflects higher start-up operational costs associated with phased implementation. Fitch projects EBITDA to reach approximately US$450 million by 2028 as additional gaming tables and slot machines come online and operational margins stabilize with scale.

Resorts World New York City continues to benefit from an advantageous first-mover position in the market, supported by a dense and affluent local population. In addition to these developments, Fitch highlighted a corporate restructuring that consolidated all US properties—including Genting New York and Empire Resorts Inc—under Genai. This entity has secured US$2 billion in bank loans to refinance Empire’s US$300 million bond maturing in 2026, refinance Genting New York’s existing US$775 million term loan, and fund ongoing capital expenditure.

Regarding operations in Malaysia, Fitch expects a modest 2% revenue increase in 2026 following a sluggish start to the financial year. First-half revenue growth stood at 1% year-on-year, constrained by weaker gaming activity among very important players. Fitch anticipates earnings to remain soft throughout the remainder of the year, citing ongoing challenges such as elevated airfares and broader macroeconomic uncertainties that could continue to affect both international tourist inflows and domestic customer traffic.