PETALING JAYA: There is now “high” risk of rating downgrades for Genting Bhd
and Genting Malaysia Bhd (GenM), following Genting’s RM3.1bil acquisition of additional shares in GenM, according to CreditSights.
Genting currently owns 73.13% of GenM. Its recently concluded takeover bid garnered an additional 23.13% stake at RM2.35 per share, falling short of the 75% threshold required to trigger delisting from the stock exchange.
CreditSights said Genting’s increased stake in GenM, coupled with its commitment to support GenM’s new casino build in New York, could meaningfully worsen Genting’s credit metrics, increase its debt load, and heighten rating-downgrade risks.
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