The slow ramp-up of operations could expose Studio City to substantial risks and reduce the likelihood of extraordinary group support from MCE group. We estimate Studio City is likely to breach its financial covenants and remain highly leveraged over the next 12 months. We are revising the rating outlook on the Macau-based casino operator to negative from stable. We are affirming our 'BB-' long-term corporate credit rating on Studio City. We are also affirming our 'B' long-term issue rating on the senior unsecured notes that Studio City Finance Ltd. issued. In line with the outlook revision, we are lowering our long-term Greater China regional scale rating on the company to 'cnBB' from 'cnBB+' and on the notes to 'cnB+' from
