Moody’s Places Genting Berhad on Review for Downgrade Amid Acquisition Move

Credit ratings agency Moody’s Investors Service has placed the Baa2 issuer rating of Genting Berhad on review for possible downgrade, citing concerns that the company’s announced voluntary offer to acquire the remaining ~50.6 % stake in Genting Malaysia Berhad will materially weaken its credit metrics. According to Moody’s, Genting’s adjusted debt/EBITDA is expected to rise to about 5.1 times in 2025 under the deal scenario—well above the agency’s 4.0 times downgrade threshold, and from an already weak base.

Moody’s also placed on review the issuer ratings of Genting’s subsidiaries: Genting Overseas Holdings Limited (GOHL), which holds a 53 % stake in Genting Singapore Limited (the operator of Resorts World Sentosa), and Genting Singapore itself (rated A3). The linkage in credit risk stems from their operational and financial interdependence with the parent company. Moody’s stated that the review will scrutinise the final funding structure of the transaction, the company’s deleveraging plans, and its post-transaction financial policy.

Investment-research firm CreditSights echoes the negative credit implications for Genting Berhad, estimating pro-forma net leverage could climb to 3.8–3.9 times and highlighting refinancing risk tied to a US$1.5 billion bond maturing in January 2027. While they view the takeover as modestly credit-positive for Genting Malaysia (via stronger parental support for its U.S. expansion plans), the parent’s financial profile faces significant pressure. In sum, the transaction may bolster strategic control but risks triggering multi-notch downgrades if the increased debt is not accompanied by a clear deleveraging path.