The proposed debt-funded share purchase by Melco Crown's ultimate parent Melco International will likely increase the group's debt leverage more than we expect and constrain Melco Crown's credit profile. Melco Crown is the key subsidiary of MCE, which is in turn Melco International's core cash-generating subsidiary. We are placing our ratings on Melco Crown and its outstanding notes on CreditWatch with negative implications. We are also placing the ratings on Studio City on CreditWatch with negative implications because the ratings on Studio City move in tandem with those on Melco Crown. We aim to resolve the CreditWatch within the next three months when we have more information to assess Melco International's credit profile and its control over the cash flow
