Fitch: Singapore, Malaysian gaming industry resilient to macro pressures

Fitch Ratings states that the outlook for the gaming industry in Singapore and Malaysia continues to be stable. This is despite declining visitor arrivals in Singapore and lower win rates for Singapore-based Genting Singapore PLC (GENS) and Malaysia-based Genting Malaysia Berhad (GENM), especially in the VIP player segment.

All three integrated resorts (IRs) continue to generate robust EBITDA margins in excess of 30%. GENS and GENM are in a net cash position, while Marina Bay Sands Pte. Ltd. (MBS) has been deleveraging. Days receivable continue to be high at over 100 days, as GENS and MBS extend credit directly to their VIP patrons. GENM is a mid-market-focused IR, whose days receivable have doubled to 44 days in 2Q15 since 1Q14.

Genting Berhad (Genting, A-/Stable), the holding company of GENS and GENM, has substantial expansion plans in 2015 and 2016. Fitch does not expect this to have an adverse effect on Genting's credit profile, as the company proposes to fund this through a combination of debt and cash.

Genting executing its expansion plans while simultaneously maintaining its low leverage and managing its receivables efficiently is key to maintaining its credit profile

Fitch's Singapore/Malaysia Gaming Dashboard 2H15 is available at www.fitchratings.com