Research Update: Melco Resorts And Studio City Outlooks Revised To Positive On Strong Macao Mass Gaming Market Recovery; Ratings Affirmed - S&P Global Ratings’ Credit Research

Research Update: Melco Resorts And Studio City Outlooks Revised To Positive On Strong Macao Mass Gaming Market Recovery; Ratings Affirmed

Research Update: Melco Resorts And Studio City Outlooks Revised To Positive On Strong Macao Mass Gaming Market Recovery; Ratings Affirmed - S&P Global Ratings’ Credit Research
Research Update: Melco Resorts And Studio City Outlooks Revised To Positive On Strong Macao Mass Gaming Market Recovery; Ratings Affirmed
Published Nov 16, 2023
8 pages (3435 words) — Published Nov 16, 2023
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Macao mass gross gaming revenue (GGR) is recovering faster than we expected. We now estimate mass GGR for 2024 will be 5%-15% higher than in 2019. Our current Macao GGR forecast implies that EBITDA and cash flow for Melco Resorts&Entertainment Ltd. (MLCO) would get close to pre-pandemic levels over the next 12-24 months. However, improvement in debt leverage will take longer. We affirmed our long-term issuer credit ratings on MLCO's operating subsidiaries Melco Resorts (Macau) Ltd. (MRM) at 'BB-' and Studio City Co. Ltd. at 'B+', and all issue-level ratings. At the same time, we revised the rating outlook to positive from stable. The positive rating outlook on MRM and Studio City reflects our view that Macao's faster

  
Brief Excerpt:

...- Macao mass gross gaming revenue (GGR) is recovering faster than we expected. We now estimate mass GGR for 2024 will be 5%-15% higher than in 2019. - Our current Macao GGR forecast implies that EBITDA and cash flow for Melco Resorts & Entertainment Ltd. (MLCO) would get close to pre-pandemic levels over the next 12-24 months. However, improvement in debt leverage will take longer. - We affirmed our long-term issuer credit ratings on MLCO's operating subsidiaries Melco Resorts (Macau) Ltd. (MRM) at '##-' and Studio City Co. Ltd. at 'B+', and all issue-level ratings. At the same time, we revised the rating outlook to positive from stable. - The positive rating outlook on MRM and Studio City reflects our view that Macao's faster mass-market recovery will support a strong rebound in MLCO's revenue and cash flow, and an improvement in leverage to 4.2x for 2024 and 3.2x for 2025....

  
Report Type:

Research Update

Issuer
Melco Resorts (Macau) Ltd.
GICS
Casinos & Gaming (25301010)
Sector
Global Issuers
Region
Latin America
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Melco Resorts And Studio City Outlooks Revised To Positive On Strong Macao Mass Gaming Market Recovery; Ratings Affirmed" Nov 16, 2023. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Melco-Resorts-And-Studio-City-Outlooks-Revised-To-Positive-On-Strong-Macao-Mass-Gaming-Market-Recovery-Ratings-Affirmed-3090802>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Melco Resorts And Studio City Outlooks Revised To Positive On Strong Macao Mass Gaming Market Recovery; Ratings Affirmed Nov 16, 2023. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Melco-Resorts-And-Studio-City-Outlooks-Revised-To-Positive-On-Strong-Macao-Mass-Gaming-Market-Recovery-Ratings-Affirmed-3090802>
  
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