TLDR
- Fitch Ratings says slow earnings recovery and heavy capital spending are keeping debt high at several Asia-Pacific gaming operators.
- Genting Bhd and Genting Malaysia were cut to BBB- in September, and their debt outlook depends largely on the New York casino project.
- SJM Holdings was downgraded to B+ in May, but Fitch expects its leverage to fall from about 9.0 times to 6.0 times by 2028.
- Universal Entertainment, owner of Okada Manila, was cut to CCC+ in July over weak demand and a falling share of VIP gaming.
- Fitch says exclusive and monopoly gaming licenses remain a key credit strength for the region’s sector.
Fitch Ratings says high debt levels remain a problem for several gaming companies in the Asia-Pacific region. The ratings agency pointed to slower earnings recovery and heavy capital spending as the main reasons.
The findings come from Fitch’s “APAC Gaming – Peer Credit Analysis” report. The review covered Genting Bhd, Genting Malaysia Bhd, SJM Holdings Ltd, Universal Entertainment Corp., and Tabcorp Holdings Ltd.
Fitch said its recent downgrades were not caused by a broad weakening in the region’s gaming industry. Instead, they were tied to problems at individual companies, including leverage, spending, earnings, and operating conditions.
The agency said EBITDA growth has been slower than expected compared with large capital spending plans. This has kept debt levels high for longer.
Genting’s New York Casino in Focus
Genting Bhd and Genting Malaysia are both rated BBB- with stable outlooks. Fitch cut both companies from BBB in September.
The downgrade reflected expansion spending in Singapore and New York. It also reflected higher start-up costs in New York and a slow recovery in other markets.
Fitch expects Genting Bhd’s proportionately consolidated EBITDA net leverage to stay above 4.0 times over the next three years. The agency said the group’s ability to cut debt depends largely on its New York casino business.
Genting New York LLC’s full-scale casino development is expected to be the group’s main source of EBITDA growth. However, Fitch said the project will also put pressure on credit metrics while it is being built.
The agency expects the New York unit’s capital spending to average about $800 million a year over the medium term. It forecasts EBITDA there will reach about $450 million in 2028, up from an estimated $208 million this year.
SJM and Universal Under Pressure
SJM Holdings is rated B+ with a stable outlook. Fitch downgraded the company from BB- in May because debt reduction and earnings recovery were slower than expected.
The agency also cited weak performance at Grand Lisboa Palace, SJM’s casino resort in Cotai. Still, Fitch expects SJM’s EBITDA leverage to fall from about 9.0 times in the first half of 2026 to about 6.0 times in 2028.
That improvement is linked to cost savings from restructuring SJM’s satellite casino operations in the second half of 2025. Lower capital spending after 2026 is also expected to help.
Universal Entertainment, which owns Okada Manila, faces a tougher operating environment. Fitch downgraded the company to CCC+ from B- in July.
Fitch said weak gaming demand, strong competition, more promotions, and a shift toward online gaming are limiting Okada Manila’s recovery. VIP table games made up 20% of Okada’s gross gaming revenue in 2025, down from 35% in 2023.
The agency said growth in the lower-spending mass market may not fully make up for the decline in VIP gaming. It expects Universal Entertainment to generate yearly EBITDA of about 19 billion yen, or $120.4 million, through 2028.
That is below the roughly 20 billion yen Fitch said the company needs to cover its cash interest costs and capital spending.
Despite these company-level pressures, Fitch said regulatory protection remains a key credit strength for the sector. The agency pointed to high barriers to entry created by exclusive or monopoly licenses in several markets.
