TLDR
- Fitch Ratings expects continued weak performance from Genting Malaysia’s domestic casino business through the rest of 2026.
- The company’s Malaysian leisure and hospitality revenue rose just 1% year over year in the first half of 2026, reaching MYR3.43 billion (US$847.26 million).
- Fitch downgraded Genting Malaysia’s long term issuer default rating to BBB- from BBB, with a stable outlook.
- High airfares and economic uncertainty are cutting into both foreign and domestic tourist spending.
- Fitch also downgraded parent company Genting Bhd and affirmed the rating of subsidiary Genting New York LLC at BBB-.
Fitch Ratings says Genting Malaysia Bhd will likely keep facing soft results from its Malaysia based gaming business for the rest of 2026. The ratings agency shared this outlook in a commentary released on Monday.
Genting Malaysia runs Malaysia’s only casino resort, Resorts World Genting, located near Kuala Lumpur. The company also operates gaming businesses in the United Kingdom, Egypt, the United States, and the Bahamas.
Revenue Growth Stays Slim
The company’s Malaysian leisure and hospitality division brought in MYR3.43 billion, or about US$847.26 million, during the first half of 2026. That marks a 1% increase from the same period last year.
Fitch pointed to weak VIP gaming volume as the main reason growth stayed limited. The agency expects the domestic business to grow by about 2% for the full year, building on a recovery from a slow first quarter.
Fitch still expects the second half of the year to bring more struggles for the company’s home market operations. Both foreign and local visitor spending face pressure from the cost of air travel.
What the Downgrade Means
Fitch’s commentary came alongside its decision to lower Genting Malaysia’s long term issuer default rating to BBB- from BBB. The agency also downgraded the rating on the company’s guaranteed US$1 billion senior unsecured notes due 2031 to the same level. The outlook on both ratings is stable.
This move followed a separate downgrade of Genting Malaysia’s parent company, Genting Bhd, which owns 73.8% of the casino operator. Genting Bhd’s long term issuer default rating was also cut to BBB-.
Fitch said Genting Malaysia’s new rating reflects its own standalone credit profile, which now matches its parent’s rating. The agency added that Genting Bhd has strong reason to support Genting Malaysia if needed.
Fitch separately affirmed the long term issuer default rating of Genting New York LLC, a wholly owned subsidiary of Genting Malaysia, at BBB- with a stable outlook.
Tourism and Travel Costs Weigh on Results
High airfares are making it harder for tourists to visit Malaysia, cutting into revenue at Resorts World Genting. Economic uncertainty is also affecting how much money both visitors and local gamblers are willing to spend.
These conditions matter more for Genting Malaysia than most rivals, since Resorts World Genting remains the only legal casino in the country. That gives the business less room to make up for weak demand through other domestic options.
Fitch expects the stable BBB- outlook to hold in the near term, meaning another downgrade is not expected soon. The agency plans to keep watching how the company’s international operations perform against its slower domestic business.
Cost management and available cash will matter as the company waits for travel and gaming activity to pick back up. Support from Genting Bhd offers some cushion, but stronger earnings will depend largely on the broader economy improving.
As of this week, Fitch’s stable BBB- rating stands as the most current assessment of Genting Malaysia’s credit position heading into the second half of 2026.
