Fitch: Singapore, Malaysian gaming resilient to macro pressures

PETALING JAYA: The outlook for the gaming industry in Singapore and Malaysia continues to be stable, said Fitch Ratings.
This is despite declining visitor arrivals in Singapore and lower win rates for Singapore-based Genting Singapore PLC (GENS) and Malaysia-based Genting Malaysia Bhd (GENM), especially in the VIP player segment.
GENS and GENM are in a net cash position, while Marina Bay Sands Pte Ltd (MBS) has been deleveraging.
Fitch said all three integrated resorts (IRs) continue to generate robust ebitda margins in excess of 30%.
It added that days receivable continue to be high at over 100 days, as GENS and MBS extend credit directly to their VIP patrons. GENM is a mid-market-focused IR, whose days receivable have doubled to 44 days in 2Q15 since 1Q14.
"Genting Bhd, the holding company of GENS and GENM, has 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," it added.
Fitch said Genting executing its expansion plans while simultaneously maintaining its low leverage and managing its receivables efficiently is key to maintaining its credit profile.