{"id":8109,"date":"2020-07-14T22:10:24","date_gmt":"2020-07-14T22:10:24","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=8109"},"modified":"2026-04-24T03:39:35","modified_gmt":"2026-04-24T06:39:35","slug":"moodys-gives-melcos-new-notes-ba2-rating","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/moodys-gives-melcos-new-notes-ba2-rating","title":{"rendered":"Moody’s gives Melco’s new notes Ba2 rating"},"content":{"rendered":"\n

Moody’s has assigned the lower rating as it predicts Melco’s parent company will continue to suffer from a drop in earnings.<\/p>\n\n\n\n\n\n\n\n

Hong Kong.- The credit ratings agency Moody\u2019s has given a disappointing opinion on the new notes issued by Melco Resorts, rating them Ba2.<\/p>\n\n\n\n

Casino operator Melco Resorts & Entertainment Limited revealed plans this week to offer a series of senior notes to be sold in the United States through its wholly-owned subsidiary, Melco Resorts Finance.<\/p>\n\n\n\n

The capital will be used to repay the outstanding amount remaining on a credit facility obtained by a subsidiary, MCO Nominee One Limited, the company said in a filling to the Hong Kong Stock Exchange.<\/p>\n\n\n\n

Sean Hwang, a Moody’s Analyst, said in a release: “The Ba2 rating reflects the established operations and high-quality assets of the group under the parent Melco Resorts & Entertainment Limited (MRE), which counterbalance the group’s geographic concentration in Macao SAR’s gaming market.”<\/p>\n\n\n\n

The analyst suggested the notes were still reliant on Melco\u2019s parent company, and recalled that Studio City Finance Limited recently issued notes as well<\/a><\/em><\/strong>, which would \u201cfurther strengthen MRE’s liquidity\u201d.<\/p>\n\n\n\n

In spite of these strengths, it decided the outlook for the company was less than optimum because it foresees a “steep drop” in the group’s earnings in 2020 due to coronavirus-induced disruptions and uncertainty.<\/p>\n\n\n\n

Moody\u2019s noted that Melco\u2019s revenue showed a 41 per cent decline to US$811 million in the first quarter of 2020, \u201cmainly as a result of the stringent travel restrictions and facility closures in its key markets\u201d.<\/p>\n\n\n\n

This was accompanied by a drop in EBITDA to US$55 million, down from from USD388 million in the same period last year. Moody’s expects negative EBITDA for the company for the second quarter of 2020.<\/p>\n","protected":false},"excerpt":{"rendered":"

Moody’s has assigned the lower rating as it predicts Melco’s parent company will continue to suffer from a drop in earnings.<\/p>\n","protected":false},"author":2,"featured_media":8111,"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 has assigned a Ba2 rating to Melco Resorts' new senior notes, citing an anticipated steep drop in earnings for 2020 due to coronavirus-induced disruptions, despite the group's established operations and high-quality assets. The casino operator plans to use the capital from these notes, issued via Melco Resorts Finance, to repay an existing credit facility. This outlook reflects a significant revenue decline and expected negative EBITDA, primarily driven by stringent travel restrictions and facility closures in key markets like Macao SAR.","focusai_entities":"Moody's, Melco Resorts & Entertainment Limited, Melco Resorts Finance, MCO Nominee One Limited, Sean Hwang, Studio City Finance Limited","focusai_location":"Hong Kong, Macao SAR, United States","focusai_target_profile":"ceo_executive (0.9), regulator (0.7), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Cost of Capital Impact","query":"What is the projected impact of the Ba2 rating on Melco's weighted average cost of capital (WACC) and its capacity to secure favorable terms for future debt issuances or refinancing activities?"},{"label":"Macao Concentration Risk","query":"Given the persistent market recovery uncertainties, how does Melco's significant geographic concentration in Macao SAR specifically influence its long-term credit profile and strategic diversification imperatives?"}],"footnotes":""},"categories":[16338,163,158],"tags":[1619,665],"class_list":["post-8109","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-east-asia-news","category-finance-news","category-slider-home","tag-hong-kong","tag-melco"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/8109","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\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=8109"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/8109\/revisions"}],"predecessor-version":[{"id":8129,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/8109\/revisions\/8129"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/8111"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=8109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=8109"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=8109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}