Bulletin: Studio City's Planned IPO Could Be Modestly Positive; Melco Resorts' Bid For Philippine Subsidiary Is Credit Neutral

HONG KONG (S&P Global Ratings) Sept. 13, 2018--S&P Global Ratings said today that the proposed IPO of Studio City International Holdings Ltd. could be modestly positive for its rated Macau-based subsidiaries by reducing Studio City's debt leverage with the IPO proceeds. However, uncertainty persists over when the IPO will be completed, the likely amount of proceeds, and the extent to which the group will use these to repay debt. The ratings on the subsidiaries Melco Resorts (Macau) Ltd. (BB/Stable/--) and Studio City Co. Ltd. (BB-/Stable/--) are therefore not affected. The publicly filed draft registration statement of Studio City International indicated the budget for Studio City's Phase II Project of US$1.35 billion-US$1.4 billion. That is well within our base-case assumptions, although

...HONG KONG (S&P Global Ratings) Sept. 13, 2018--S&P Global Ratings said today that the proposed IPO of Studio City International Holdings Ltd. could be modestly positive for its rated Macau-based subsidiaries by reducing Studio City's debt leverage with the IPO proceeds. However, uncertainty persists over when the IPO will be completed, the likely amount of proceeds, and the extent to which the group will use these to repay debt. The ratings on the subsidiaries Melco Resorts (Macau) Ltd. (##/Stable/--) and Studio City Co. Ltd. (##-/Stable/--) are therefore not affected. The publicly filed draft registration statement of Studio City International indicated the budget for Studio City's Phase II Project of US$1.35 billion-US$1.4 billion. That is well within our base-case assumptions, although the timing of the expenditure could vary from our forecasts. We expect the majority of the spending to occur near the completion of the project, prior to the July 2021 deadline. Melco Resorts & Entertainment...

Bulletin