Bulletin: Melco Crown (Macau) Ltd. Ratings Not Immediately Affected By Stronger 2017 Interim Results

HONG KONG (S&P Global Ratings) July 28, 2017--S&P Global Ratings said today that its corporate credit ratings and outlook on Melco Crown (Macau) Ltd. (Melco Crown: BB/Negative/--; cnBB+/--) are not immediately affected by the stronger-than-expected financial results of its parent, Melco Resorts&Entertainment Ltd. (MLCO), for the first half of 2017. We view Melco Crown as the most important cash-generating asset of its intermediate parent (MLCO) and ultimate parent (Melco International Development Ltd.). MLCO's debt leverage of 2.7x in the first half was below our estimate of 3.0x-3.2x for full year 2017, due to stronger growth in Macau's gross gaming revenue than we expected. However, we believe the company's leverage could weaken somewhat in the second half of the

...HONG KONG (S&P Global Ratings) July 28, 2017--S&P Global Ratings said today that its corporate credit ratings and outlook on Melco Crown (Macau) Ltd. (Melco Crown: ##/Negative/--; cnBB+/--) are not immediately affected by the stronger-than-expected financial results of its parent, Melco Resorts & Entertainment Ltd. (MLCO), for the first half of 2017. We view Melco Crown as the most important cash-generating asset of its intermediate parent (MLCO) and ultimate parent (Melco International Development Ltd.). MLCO's debt leverage of 2.7x in the first half was below our estimate of 3.0x-3.2x for full year 2017, due to stronger growth in Macau's gross gaming revenue than we expected. However, we believe the company's leverage could weaken somewhat in the second half of the year. We anticipate slower gaming revenue growth and higher cash-flow volatility over the next six to 12 months in response to a potential tightening of the regulatory environment for Macau's gaming industry. The Chinese government...

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