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Gaming outlook in Singapore, Malaysia stable: Fitch

Monday, September 7, 2015 - 10:35
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The outlook for the gaming sector in Singapore and Malaysia is stable despite declining visitor arrivals, shrinking VIP business and lower win rates, said rating firm Fitch Ratings.

THE outlook for the gaming sector in Singapore and Malaysia is stable despite declining visitor arrivals, shrinking VIP business and lower win rates, said rating firm Fitch Ratings.

The rating agency premised its positive prognosis on the robust ebitda (earnings before interest, tax, depreciation and amortisation) numbers of over 30 per cent notched up by all three integrated resorts operated by Genting Malaysia in Malaysia and Genting Singapore and Marina Bay Sands in Singapore.

Genting Singapore and Genting Malaysia are in a net cash position, while MBS has been deleveraging. Days receivable continue to be high at over 100 days, as the operators of the two IRs in Singapore extend credit directly to their VIP patrons, said Fitch in a statement.

For Genting Malaysia, a mid-market-focused IR, the days receivable have doubled to 44 days in second quarter 2015 since the first quarter of 2014.

Fitch pointed out that Genting Berhad, the holding company of Genting Singapore and Genting Malaysia, has "substantial" expansion plans in 2015 and 2016 but this was not expected to adversely effect its credit profile as it has proposed to fund the plans 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," said the rating agency.

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