Genting NYC Casino Recreation Before Asia Venues: S & P.
Standard & Poor’s (S & Ps) Global Ratings has assigned Genting New York LLC, the operator of the World Casino New York City resort (pictured) in the USA, a long-term issuer rating of “BBB” with a “negative” outlook.
The financial institution also issued a ‘BBB-‘ rating on the company’s senior unsecured notes on Monday, S&P said in an announcement.
Genting New York was a “single asset operator” but its venue near John F. Kennedy International Airport was supposed to “accommodate an expanded gaming area and 400 rooms” and already had a “dominant slot machine market” in New York York city.
The rating firm also believed that operations in New York City would recover faster than the Genting Group’s casinos in Malaysia or Singapore, given that the New York market was more focused on locals than overseas tourists.
Genting New York’s immediate controller is Genting Malaysia Bhd and its ultimate controller is Genting Bhd.
S&P said the “negative” outlook for Genting New York “mirrors that of its ultimate parent company”.
“This is based on our view that Genting [Bhd] Due to the increased capital expenditure and the delayed recovery from the Covid-19 pandemic, the scope for ratings is limited, ”write analysts Shawn Park, Simon Wong and Christina Lim.
S & P rates Genting Bhd one notch higher at “BBB” with a “negative” outlook.
The rating company found that the Resorts World Casino New York City was “completely closed for six months since March 2020” due to the pandemic and that “Genting New York’s business” was almost back up again with the resumption of operations in September Covid lag -19 levels ”.
The analysts said, “We expect Genting New York’s business to recover more strongly than Genting’s other gambling venues such as Singapore and Malaysia.”
Resorts World Genting in Malaysia is currently closed until February 4thdue to an increase in Covid-19 cases in this country. Resorts World Sentosa in Singapore is operational with reduced capacity for non-gaming attractions and gaming operations as Covid-19 countermeasures.
The institution considered it “unlikely” that Genting New York would be sold “because of its close association with the group’s brand and reputation and its business in the same industry”.
The financial institution noted that it believed Genting Bhd would support Genting New York “even in a stressful environment”.
“Through Genting Malaysia, the group provided the company with more than $ 500 million, mainly for the construction of Resorts World New York City from 2010 to 2011,” said S & P.