The rating on Studio City Co. Ltd. reflects the company's highly leveraged capital structure and the significant construction and execution risks associated with its integrated gaming resort, called Studio City Project, in Cotai, Macau. In addition, Studio City is exposed to single-property risk in Macau. The good growth prospects of Macau's gaming market and our expectation of ongoing support from the project sponsor, Melco Crown Entertainment Ltd. (MCE; not rated), temper these weaknesses. Studio City's 'b' stand-alone credit profile (SACP) reflects the company's "weak" business risk profile and "highly leveraged" financial risk profile, as our criteria define these terms. The long-term rating on Studio City is one notch higher than the SACP to reflect our expectation of some support from
