Studio City remains a strategically important subsidiary of the MLCO group, in our view. We expect the strong operating cash flow of MLCO will provide sufficient buffer against the group's high shareholder distributions and capital investment over the next 12 months. We are revising the outlook on the long-term corporate credit rating on Studio City to stable from negative. We are affirming our 'BB-' corporate credit rating on Studio City. We are also affirming our 'BB-' issue rating on the company's senior secured notes and our 'B+' issue rating on the senior unsecured notes that Studio City guarantees. The stable outlook on Studio City reflects our expectation that the company's debt leverage will stay high despite improving operating cash flows
