Moody’s rates Melco Resorts notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to the proposed dollar-denominated notes to be issued by Melco Resorts Finance Ltd.

The rating outlook is stable.

Melco Resorts Finance plans to use the bond proceeds to redeem its existing $1 billion senior notes due 2021 issued in 2013.

"The Ba3 rating reflects Melco Resorts Finance's established operations in Macau through Melco Crown (Macau) – which is the key operating entity that holds the gaming concession – with solid financial metrics and good liquidity," Moody's vice president and senior analyst Stephanie Lau said in a news release.

"However, the rating is constrained by its geographic concentration and heavy reliance on the operations of its two major properties."

The agency said it expects the bond issuance will lengthen Melco Resorts Finance's debt maturity profile and have no impact on its credit metrics, because the proceeds will be used to refinance existing debt.

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