Fitch says Genting perpetual securities would offer limited leverage relief
Fitch said Genting Berhad’s proposed perpetual securities would not by themselves remove the risk of a ratings downgrade, with the group’s outlook remaining Negative. The agency said it would count the securities as half debt and half equity, lowering leverage from 5.5x to 4.8x, but characterised this as accounting relief rather than cash debt reduction.
Genting’s ability to reduce debt and the performance of its New York casino are material to its credit outlook.