Research Update: Melco Resorts (Macau) 'BB' Rating Affirmed On Sufficient Buffer To Absorb Acquisition Of Crown Shares; Outlook Stable

We expect the debt leverage of Melco Resorts (Macau) Ltd.'s (MRM) parent, MLCO, to increase following the acquisition of stake in Crown Resorts. However, leverage will remain commensurate with the rating. MLCO's strong cash generation, our anticipation that the group will scale back share repurchase, and the good asset quality of Crown Resorts Ltd. temper the risks. In analyzing MRM, we assess the consolidated credit profile of the group. On June 4, 2019, S&P Global Ratings affirmed its 'BB' long-term issuer credit rating on MRM. We also affirmed our 'BB' long-term issue rating on the senior unsecured notes that Melco Resorts Finance Ltd. issued. The stable outlook on MRM reflects our expectation that the group will generate strong operating cash

...- We expect the debt leverage of Melco Resorts (Macau) Ltd.'s (MRM) parent, MLCO, to increase following the acquisition of stake in Crown Resorts. However, leverage will remain commensurate with the rating. - MLCO's strong cash generation, our anticipation that the group will scale back share repurchase, and the good asset quality of Crown Resorts Ltd. temper the risks. In analyzing MRM, we assess the consolidated credit profile of the group. - On June 4, 2019, S&P Global Ratings affirmed its '##' long-term issuer credit rating on MRM. We also affirmed our '##' long-term issue rating on the senior unsecured notes that Melco Resorts Finance Ltd. issued. - The stable outlook on MRM reflects our expectation that the group will generate strong operating cash flows and scale back share repurchases to fund capital investments over the next 12 months....

Research Update