Genting Bhd, the Malaysian conglomerate with an array of casino holdings, may need to sell some assets to ward off a credit downgrade and its unused Miami real estate could be atop the list of potential divestments.

In a recent report, CreditSights analysts praised Genting, which owns Resorts World Las Vegas , for a recent $306 million rights issue that raised needed capital, but the research firm says bolder, larger steps must be taken to shore up the company’s finances. Those could include selling “non-core assets,” including the Miami land.

Genting Bhd is the parent company of units that control major casino hotels, including Resorts World Las Vegas, Resorts World Sentosa in Singapore and Resorts World New York .

The idea of Genting selling its 16.5 acres of prime South Florida real estate isn’t new. The conglomerate nearly did so in 2023 at a price tag of $1.23 billion, but that deal fell apart after the company refused to grant prospective buyer SmartCity Miami an extended exclusivity period.  

Genting acquired the land in hopes of building a casino resort there, but that plan didn’t come to fruition. Selling that unused parcel, particularly if the sale price is $1 billion or more, could be an important leverage-reducing move.

The CreditSights analysts note that due to Genting’s “heavy capital expenditure pipeline,” smaller moves such as potential dividend cuts or issuance of perpetual securities and even earnings improvements in Las Vegas and New York won’t be enough to move the needle in terms of cutting debt.

Genting Bhd may be motivated to sell the Miami real estate and other non-essential assets if for no other reason than it wants to stave off a potential downgrade to junk status. S&P Global Ratings currently assigns a credit rating of BBB- to Genting, the lowest mark in investment-grade territory. That ratings agency has a “negative” outlook on Genting.

“The group has no more buffer for a further downward surprise to operational earnings. Its credit metrics are diverging further from [the] downside trigger, and as such, making near-term recovery seem increasingly unlikely,” according to a September report from S&P.