...November 10, 2025 This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Nov. 11, 2025--Melco Resorts & Entertainment Ltd. (MLCO) is primed for further deleveraging. This is thanks to growing demand for gaming in Macao and the company's efforts to reduce debt. We forecast MLCO's debt-to-EBITDA ratio will improve to about 4x by 2026 from 4.8x in 2025. MLCO is the parent and key credit driver of Melco Resorts (Macau) Ltd. (MRM; ##-/Stable/--) and Studio City Co. Ltd. (B+/Stable/--). We believe MLCO's gaming revenue and EBITDA will continue to expand over the next 12-24 months. A strong line-up of events as well as favorable currency movements should propel higher visitation and gaming demand in Macao. MLCO's increased capacity after the recommissioning of its Countdown hotel in 2026 could help the company increase its market share. Better operating leverage at the Macao and Cyprus properties will also aid margin expansion. MLCO's third-quarter results were largely...
