December 19, 2007: 06:34 AM EST
MUMBAI, Dec. 19, 2007 (Thomson Financial delivered by Newstex) -- Standard & Poor's (NYSE:MHP) Ratings Services said it lowered its corporate credit rating on Malaysian gaming and leisure company Genting Bhd to 'BBB' from 'BBB+' citing weakening financial profile arising from higher debt required to fund the Sentosa integrated resort project and increased exposure to project-completion risks.
S&P also lowered the senior unsecured debt guaranteed by Genting to 'BBB' from 'BBB+'.
S&P said it took the rating off negative watch and that the outlook on the rating was stable.Genting's ratings continue to be supported by its firm market position in the resort and gaming business, moderate level of revenue and earnings diversity and its currently adequate financial profile.
However, it added that though some delays have been factored in, inordinately slow progress in the Sentosa project would affect cash flow adequacy further and postpone the anticipated correction in the company's financial profile, resulting in downward pressure on the rating.
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