Moody's Investors Service Inc says the "danger" is being caused by Genting Bhd's "strong desire to expand its gaming franchise in the United States." Malaysia-based Genting Group operates casino resorts in Asia, the United States, the Bahamas, the United Kingdom, and Egypt.

In January, the New York State Gaming Commission launched an application (RFA) process request for three game licenses in New York State.

Many investment analysts have suggested that Genting Group could be a leader in Downstate New York licenses. The group already operates an electronic gaming facility called Resort World Casino New York City and invests in Empire Resorts Inc., which operates Resort World Catskills, a full-service casino in the New York state.

"Genting Bhd has a strong enforcement track record, but if the group wins licenses for upstate New York, these projects could consume significant operational and financial resources," Moody's said in a report on Tuesday.

The update follows confirmation of Genting Bhd's 'Baa2' issuer rating on Monday. Debt with a 'Baa2' rating is subject to "moderate credit risk".

"We expect to bid for one of three New York Downtown gaming licenses that may result in significant cash expenditures related to future licensing fees and development costs," Moody's said in a recent note through its subsidiary Genting New York LLC.

Some big gaming operators with Asian locations, including Las Vegas Sands Corp, MGM Resorts International and Wynn Resorts Ltd., have announced plans to bid for licenses in New York.

The RFA, launched by New York authorities, outlined minimum requirements of $1 billion for licensing fees and capital investments, with a minimum payment of $500 million to be made within 30 days of granting the license. The relevant casino permits will range from 10 years to up to 30 years, depending on the size of the investment promised.

According to Moody's, a "substantial debt increase" related to the New York project will "mix" the agency's expectations of Genting Bhd's deleveraging. It also says, "aggressive financial policies will put downward pressure on Genting Bhd's rating."