Genting to raise MYR1.25bn rights issue but CreditSights says asset sales remain essential

Genting Bhd proposed a rights issue of MYR1.25 billion (US$305.8 million) announced on Friday, but CreditSights argues the group will likely need to sell non-core assets to avoid further downgrades to its credit rating. The group said MYR800 million of the proceeds will be used to repay debt and about MYR429.5 million for working capital; the transaction is expected to complete in the first quarter of 2027.

CreditSights: Genting asset sales will still be necessary

CreditSights views the rights issue as a constructive step but with modest impact on the group's credit metrics. In a report published on Monday, analysts Jonathan Tan, Jun Jie and Lakshmanan R wrote that the primary tool to avoid further downgrades will be the sale of non-core assets, with particular focus on unused land parcels in Miami, United States.

"We believe non-core asset sales will be the main tool to stave off downgrade risks, notably the unused Miami land parcels," the CreditSights analysts wrote.

The report highlights that dividend cuts, issuance of perpetual securities and operating improvements — notably in New York, Singapore and Las Vegas — would not offset pressure from the group's large capital expenditure timetable.

Details of the rights issue and the leverage impact

The proposed issue is for MYR1.25 billion (US$305.8 million). Of that total, MYR800 million is earmarked for debt repayment and around MYR429.5 million for working capital. CreditSights estimates the measure would reduce net leverage by only 0.2–0.3x, leaving it at roughly 4.3x.

The firm describes the move as a welcome shift away from Genting Bhd's historic reliance on external financing, since it implies shareholders accept a share of the debt-reduction burden. Still, the research house says the risk of losing investment-grade status with S&P Global Ratings remains relevant, albeit somewhat narrower.

Miami land parcels: the lever that could make a difference

Genting Bhd had tried to sell four Miami parcels for about US$1.23 billion in 2023; the deal did not complete. CreditSights said it is "cautiously hopeful" that the group could accelerate a sale of those lands for more than US$1.0 billion.

S&P Global Ratings said last month that a disposal at a similar valuation could improve the group's funds-from-operations-to-debt (FFO-to-debt) ratio by between 3 and 4 percentage points.

If realised, the sale of those assets would have the largest effect on Genting's credit ratios, according to market analysis cited by CreditSights.

Restriction on new debt-funded share purchases of Genting Bhd

CreditSights expects Genting Bhd to refrain from debt-funded purchases of stakes in its subsidiary Genting Malaysia Bhd for the next 12 to 18 months. The move is aimed at preserving the balance sheet and avoiding additional leverage and pressure on the rating.

The company conducted a takeover offer that closed in December 2025 without reaching the 75% threshold needed to force delisting; subsequent purchases raised its holding to about 73.86%, according to GGRAsia.

Group position and operating footprint

Genting Bhd is the parent company of Genting Singapore Ltd, operator of the Resorts World Sentosa complex in Singapore, and it is also the parent of Genting Malaysia Bhd, which runs Resorts World Genting, the only licensed casino complex in Malaysia. Genting Malaysia also operates casinos in the United States, the Bahamas, the United Kingdom and Egypt.

The conglomerate, which combines global casino operations and a plantation business, faces an investment and capital expenditure schedule that strains its credit profile. Even so, CreditSights does not consider refinancing risk to be high for the group's US$618 million bond maturing in January 2027, citing available cash and access to bond and loan markets.

"We are cautiously hopeful that Genting Bhd could accelerate a sale of the unused Miami land for potentially more than US$1 billion," the CreditSights report notes.

What this means for investors and capital markets

A sale of the Miami parcels above US$1.0 billion would be the most direct way to improve Genting's financial ratios and reduce the likelihood of an S&P Global Ratings downgrade. Without that transaction, the leverage reduction from the rights issue alone would be insufficient for the group's financing needs.

For markets, the sequence to watch will be:

1. Execution of the rights issue, expected to complete in the first quarter of 2027.

2. Attempts to accelerate sales of non-core assets, in particular the Miami parcels.

3. Restriction on new leveraged purchases of stakes in Genting Malaysia for 12–18 months.

Readers interested in capital-structure effects and vendor implications can consult our analysis in [b2b](/b2b). The regulatory implications around ownership control and potential delisting relate to frameworks we also cover in [regulation](/regulation).

Conclusion

The MYR1.25 billion rights issue eases some of Genting Bhd's financial pressure, but CreditSights says it does not remove the need for disposals of non-core assets to protect the credit rating. The Miami parcels stand out as the asset with the most immediate potential impact; without them, the company remains exposed to re-rating risk if its capital expenditure schedule stays elevated.