...May 2, 2019 HONG KONG (S&P Global Ratings) May 3, 2019--S&P Global Ratings today said that Studio City Co. Ltd. (##-/Stable/--) and Melco Resorts (Macau) Ltd. (##/Stable/--) can withstand the bankruptcy filed by New Cotai Holdings LLC, the second-largest shareholder in Studio City. We do not expect the event to materially affect Studio City's business operations or strategy, including funding for Studio City Phase II construction, given management and resources are independent of New Cotai Holdings. We expect Studio City to fund the US$1.4 billion construction project with operating cash flow, cash on hand, and new debt. The event should also not affect Studio City's financial standing, as there is no association between New Cotai Holdings' debt and Studio City. That said, we see potential for a negative impact on Studio City's financing options via equity markets in the next 12 months. This is due to the overhang of the outstanding court case related to the bankruptcy of the shareholder...
