Studio City has a highly leveraged capital structure, significant construction and execution risk, and asset concentration risk, in our view. The Macau gaming market's good growth potential counterbalances these weaknesses. Our rating takes into account one notch of implied support from Studio City's majority owner, MCE. We are assigning our 'B+' long-term corporate credit rating and our 'cnBB' long-term Greater China regional scale rating to Studio City, and our 'B-' issue rating and 'cnB+' Greater China regional scale rating to the Macau-based gaming company's proposed senior notes. The stable outlook reflects our view that the timing and costs of the company's Studio City Project will be in line with our expectation. On Nov. 7, 2012, Standard&Poor's Ratings Services
