...HONG KONG (Standard & Poor's) Oct. 23, 2015--Standard & Poor's Ratings Services today said that its ratings on Studio City Co. Ltd. (##-/Stable/--; cnBB+/--) would not be immediately affected by a gaming table allocation made to the casino operator. The table allocation by the Macau government and Studio City's intention to renegotiate the terms of its senior credit facilities with lenders are in line with Standard & Poor's expectations. We estimate that the headroom of Studio City's debt covenants may shrink over the next 12 months, if the company fails to secure at least 400 tables by Oct. 1, 2016, which is a condition under its current bank loans. Weak growth in gaming revenue in Macau may also constrain the company's liquidity and covenants headroom, if its operating performance is weaker than we forecast. However, we expect Studio City to renegotiate the terms of its bank loan with creditors to avoid a technical default and accelerated payment. We believe the company still has time...
