Fitch: Resorts World NY EBITDA to Climb, Spending Constrains Parent Credit Rating

Resorts World New York has a leg up on its two yet-to-be-built competitors in the New York City-area casino competition with Fitch Ratings forecasting a significant ramp-up in earnings before interest, taxes, depreciation and amortization (EBITDA) at the Queens property, but related spending is weighing on the parent company’s credit ratings.

In a new report, Fitch downgraded Genting Bhd to ‘BBB-‌’, the lowest investment grade, from ‘BBB’, due in part to sizable spending plans in New York and Singapore. The ratings agency affirmed Genting New York, the wholly owned unit that controls Resorts World New York, at ‘BBB-‌’‌ with a “stable” outlook. Genting is pledging $5 billion to advance Resorts World New York, a property at which table games debuted earlier this year after years spent as a slots-only venue. The research firm says the operator already spent $700 million.

The ratings agency also points out that spending on Resorts World New York is likely to tally $800 million annually “over the medium term” and that venue is on track to open 400 table games by January.

Resorts World NY EBITDA Could Surge by 2028

With Bally’s (the Bronx) and Hard Rock (Queens) several years away from opening, Resorts World’s move to roll out table games this year amounts to a pivotal head start, but Fitch downwardly revised its 2026 EBITDA outlook for the property.

The research firm expects the Queens casino will generate $208 million in EBITDA this year, down from a prior forecast of $215 million, but that tally could rapidly accelerate over the next two years.

“We expect EBITDA to reach around $450 million by 2028 as more tables and slot machines are added and margins normalise with scale,” adds Fitch. “Resorts World New York continues to benefit from first-mover advantage in New York, supported by a dense population base and high income levels in the surrounding catchment area.”

Fitch points out that Genting’s U.S. and Bahamas operations now reside under the umbrella of Genting America Inc. (GENAI), which is also supporting the financially scuffling Empire Resorts Inc. unit.

Genting Malaysia Weaker Than Some Peers

While Fitch maintained an investment-grade rating on Genting Malaysia, one of the parent company’s largest units, the credit grading firm said that entity is slightly weaker, financially speaking, than competitors such as Las Vegas Sands (NYSE: LVS) and the Seminole Tribe of Florida.

“Genting Malaysia’s business profile is underpinned by its monopolistic position in the mature Malaysian gaming market,” according to Fitch. “Sands’ higher rating reflects a strong rebound in Macao and Singapore, resulting in improved leverage metrics of around 2.5x, lower than Genting Malaysia’s, which is above 3.0x.”