Melco Crown (Macau) Ltd.

Operates in an intensely competitive and tough market. Revenue concentration. Good market position. Potential extraordinary support from Crown Resort Ltd. Risk of slow ramp up of Studio City. Potential shareholder-friendly capital spending could reduce financial buffer. Good operating cash flow from existing casinos. Strong liquidity. The stable outlook on Melco Crown (Macau) Ltd. reflects our expectation that the existing casinos of Melco Crown Entertainment Ltd. (MCE), Melco Crown's parent, will continue to generate good cash flows and the Macau gaming industry will stabilize. We estimate that MCE's debt-to-EBITDA ratio will remain below 4.0x over the next 12 months. Nonetheless, we anticipate a slow ramp-up of MCE's new projects in Macau, given the still-tough operating environment for the gaming industry in

...Outlook: Stable The stable outlook on Melco Crown (Macau) Ltd. reflects our expectation that the existing casinos of Melco Crown Entertainment Ltd. (MCE), Melco Crown's parent, will continue to generate good cash flows and the Macau gaming industry will stabilize. We estimate that MCE's debt-to-EBITDA ratio will remain below 4.0x over the next 12 months. Nonetheless, we anticipate a slow ramp-up of MCE's new projects in Macau, given the still-tough operating environment for the gaming industry in Macau. We take a consolidated view of the MCE group when analyzing Melco Crown's credit profile, because the company is MCE's major operating asset and holder of the group's gaming subconcession....

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