OREANDA-NEWS. Fitch Ratings says in a new report that the outlook for the highly regulated integrated resorts (IRs) in Singapore and Malaysia is stable despite challenging macroeconomic conditions.

The three issuers in these countries - Genting Berhad (Genting, A-/Stable), Genting Singapore PLC (GENS, A-/Stable) and Marina Bay Sands Pte. Ltd. (MBS, BBB-/Stable) - are established companies that continue to generate robust operating cash flows. GENS and Genting maintain a net cash position; and MBS has been deleveraging despite slower economic growth, lower tourist arrivals at Malaysia, and rising competition from integrated resorts in the Philippines and South Korea. Receivables outstanding for all three issuers are at acceptable levels, and are unlikely to impair their credit profiles in the medium term.

Fitch believes that the Singapore government is unlikely to grant licences to set up new casinos - due to the potentially higher frequency of problem gaming with the local population, and the muted outlook for the inbound tourism sector in Singapore. This is despite the imminent expiry of the exclusivity period for GENS and MBS. Fitch's stable outlook for the Malaysian gaming market is underpinned by the market's domestic and mass-market focus, which provides defensive qualities.