Bulletin: Melco Resorts Finance's Proposed Retap Won't Hurt Parent's Leverage - S&P Global Ratings’ Credit Research

Bulletin: Melco Resorts Finance's Proposed Retap Won't Hurt Parent's Leverage

Bulletin: Melco Resorts Finance's Proposed Retap Won't Hurt Parent's Leverage - S&P Global Ratings’ Credit Research
Bulletin: Melco Resorts Finance's Proposed Retap Won't Hurt Parent's Leverage
Published Aug 03, 2020
2 pages (1138 words) — Published Aug 03, 2020
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Abstract:

HONG KONG (S&P Global Ratings) Aug. 4, 2020--S&P Global Ratings today said that Melco Resorts Finance Ltd.'s proposed retap of its 5.75% U.S. dollar-denominated senior notes due 2028 will not significantly increase the leverage of its parent Melco Resorts&Entertainment Ltd. (MLCO). The 'BB' issue rating on the notes remains equalized with the issuer credit rating on MLCO's core operating subsidiary Melco Resorts (Macau) Ltd. The issue rating remains on CreditWatch with negative implications. The additional debt does not alter our view that MLCO's leverage that will remain weak in 2020, given the plunge in revenue in both its Macau and Manila operations due to the COVID-19 pandemic. However, we continue to believe MLCO's debt-to-EBITDA ratio will significantly improve

  
Brief Excerpt:

...August 3, 2020 HONG KONG (S&P Global Ratings) Aug. 4, 2020--S&P Global Ratings today said that Melco Resorts Finance Ltd.'s proposed retap of its 5.75% U.S. dollar-denominated senior notes due 2028 will not significantly increase the leverage of its parent Melco Resorts & Entertainment Ltd. (MLCO). The '##' issue rating on the notes remains equalized with the issuer credit rating on MLCO's core operating subsidiary Melco Resorts (Macau) Ltd. The issue rating remains on CreditWatch with negative implications. The additional debt does not alter our view that MLCO's leverage that will remain weak in 2020, given the plunge in revenue in both its Macau and Manila operations due to the COVID-19 pandemic. However, we continue to believe MLCO's debt-to-EBITDA ratio will significantly improve to below 3.5x in 2021, assuming that Macau's gross gaming revenues in the year would recover to not less than 85%-90% of the 2019 level. Our ratings on Melco Resorts (##/Watch Neg/--) and Studio City Co. Ltd....

  
Report Type:

Bulletin

Issuer
Melco Resorts (Macau) Ltd.
GICS
Casinos & Gaming (25301010)
Sector
Global Issuers
Region
Latin America
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Melco Resorts Finance's Proposed Retap Won't Hurt Parent's Leverage" Aug 03, 2020. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Melco-Resorts-Finance-s-Proposed-Retap-Won-t-Hurt-Parent-s-Leverage-2489515>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Melco Resorts Finance's Proposed Retap Won't Hurt Parent's Leverage Aug 03, 2020. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Melco-Resorts-Finance-s-Proposed-Retap-Won-t-Hurt-Parent-s-Leverage-2489515>
  
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