{"id":777018398,"date":"2024-08-22T09:38:28","date_gmt":"2024-08-22T12:38:28","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=777018398"},"modified":"2026-04-22T06:54:44","modified_gmt":"2026-04-22T09:54:44","slug":"moodys-assigns-stable-outlook-to-melco-units","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/moodys-assigns-stable-outlook-to-melco-units","title":{"rendered":"Moody&#8217;s assigns stable outlook to Melco units"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Analysts forecast earnings recovery and improved financial leverage.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p class=\"wp-block-paragraph\">Macau.-Moody\u2019s Investors Services has assigned a stable outlook to Melco Resorts Finance and Studio City Finance. It expects improved earnings and finances over the next 12 to 18 months.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Analysts expect that Studio City Finance, associated with the Studio City casino complex in Macau, will not pay dividends for the next one to two years because the company has high leverage due to debt acquired to support capital spending following the Covid-19 pandemic. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Moody&#8217;s gave Melco Resorts Finance a Ba3 corporate family rating and expects the company&#8217;s adjusted EBITDA to improve 5.2x to 6.2x over the next 12 to 18 months from 8.6x in 2023. It gave Studio City Finance  B1 corporate family rating and expects adjusted debt\/EBITDA to improve to 6x-7x over the next 12-18 months.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>See also: <\/strong><a target=\"_blank\" href=\"https:\/\/focusgn.com\/asia-pacific\/melco-resorts-buys-back-shares\" rel=\"noreferrer noopener\">Melco Resorts buys back shares<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Melco Resorts &amp; Entertainment Limited\u00a0reported\u00a0operating revenue of US$1.16bn for the second quarter of the year,\u00a0up 22 per cent\u00a0in\u00a0<a href=\"https:\/\/focusgn.com\/asia-pacific\/melco-resorts-posts-revenue-of-us947-9m-for-q2\" target=\"_blank\" rel=\"noreferrer noopener\">year-on-year terms<\/a>. The increase was attributed to improved performance in the mass market segment and non-gaming operations driven by the recovery in inbound tourism to Macau.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Analysts forecast earnings recovery and improved financial leverage.<\/p>\n","protected":false},"author":176,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Moody's Investors Services has assigned a stable outlook to Melco Resorts Finance and Studio City Finance, forecasting improved earnings and financial leverage over the next 12-18 months, primarily driven by Macau's tourism recovery. Melco Resorts Finance received a Ba3 corporate family rating with expected adjusted EBITDA improvement, while Studio City Finance, rated B1, is anticipated to withhold dividends for 1-2 years due to high leverage from pandemic-era capital expenditures.","focusai_entities":"Moody\u2019s Investors Services, Melco Resorts Finance, Studio City Finance, Studio City, Melco Resorts & Entertainment Limited","focusai_location":"Macau","focusai_target_profile":"ceo_executive (1.0), regulator (0.7), operator_casino (1.0), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Melco EBITDA Drivers?","query":"What are the specific drivers behind Moody's improved EBITDA projections for Melco Resorts Finance, and how sustainable are these given the current Macau market dynamics and competitive landscape?"},{"label":"Studio City Dividend Impact?","query":"How will Studio City Finance's decision to withhold dividends impact its capital structure, deleveraging strategy, and long-term growth initiatives, particularly concerning future integrated resort developments?"}],"footnotes":""},"categories":[157,16338],"tags":[23970],"class_list":["post-777018398","post","type-post","status-publish","format-standard","hentry","category-business-news","category-east-asia-news","tag-melco-resorts-entertainment"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777018398","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777018398"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777018398\/revisions"}],"predecessor-version":[{"id":777018413,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777018398\/revisions\/777018413"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777018398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777018398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777018398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}