Moody's Ratings has placed the Baa2 issuer rating of Genting Bhd (KL:GENTING) on review for a potential downgrade. This action follows the announcement of a planned RM6.3 billion debt-funded acquisition of the remaining 50.6% stake in Genting Malaysia Bhd (KL:GENM) that it does not currently own. Moody's stated that the review is prompted by the expectation that Genting's credit quality will materially weaken, as the takeover will be largely financed by new borrowings. The ratings agency already considers Genting's credit metrics to be "stretched". The review for downgrade also extends to other related entities, including Genting Overseas Holdings Ltd.'s Baa2 backed senior unsecured rating and the A3 issuer rating of its subsidiary, Genting Singapore Ltd, due to contagion risk from its parent company.
Moody's Places Genting Bhd on Review for Downgrade Following Planned Acquisition
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