Singapore & Malaysia gambling rated “stable”

It said on Monday this was despite declining visitor arrivals in Singapore and lower win rates for Genting Singapore PLC (GENS) and Genting Malaysia Bhd (GENM), especially in the VIP player segment.

All three integrated resorts continued to generate robust earnings before interest, depreciation, taxation and amortisation (EBITDA) margins in excess of 30%.

“GENS and GENM are in a net cash position, while Marina Bay Sands Pte. Ltd. (MBS) has been deleveraging. Days receivable continue to be high at over 100 days, as GENS and MBS extend credit directly to their VIP patrons,” the rating house said in a statement on Monday.

It said GENM was a mid-market-focused integrated resort, whose days receivable had doubled to 44 days in 2Q15 since 1Q14.

Fitch Ratings added that Genting Bhd (Genting, A-/Stable), the holding company of GENS and GENM, had substantial expansion plans in 2015 and 2016.

“Fitch does not expect this to have an adverse effect on Genting’s credit profile, as the company proposes to fund this through a combination of debt and cash. Genting executing its expansion plans while simultaneously maintaining its low leverage and managing its receivables efficiently is key to maintaining its credit profile,” it said.