...August 5, 2025 This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Aug. 5, 2025--Melco Resorts & Entertainment Ltd.'s EBITDA recovery and ongoing deleveraging are likely to continue. Gaming revenue growth and cost control will support that trend. The integrated resorts operator reported strong second-quarter results, driven by high demand from premium mass gamers in Macao. In our view, Melco Resorts & Entertainment (MLCO) is on track to improve its debt-to-EBITDA ratio to within our downgrade threshold of 4.5x by mid-2026. MLCO is the parent and key credit driver of Melco Resorts (Macau) Ltd. (##-/Stable/--) and Studio City Co. Ltd. (B+/Stable/--). MLCO's management has persisted with its plan to prioritize debt reduction, and we project the company to remain prudent in shareholder returns or big new investments over the next 12 months. MLCO's adjusted debt-to-EBITDA ratio has receded to 5.6x by June 30, 2025, from 6.0x as of year-end 2024. Similarly, Studio...
