Moody's rates Melco Resorts notes Ba2

Moody's Investors Service said it affirmed Melco Resorts Finance Ltd.'s Ba2 corporate family rating, as well as the Ba2 senior unsecured rating for the company's existing $1 billion senior unsecured notes due 2025.

Moody's also said it assigned a Ba2 rating to the proposed dollar-denominated senior unsecured notes to be issued by Melco Resorts Finance.

Melco Resorts Finance plans to use the bond proceeds to partially repay the principal amount outstanding under the 2015 revolving credit facility at its subsidiary Melco Resorts (Macau) Ltd., the agency said.

The outlook is stable.

The ratings reflects the established operations in Macau and an expectation that the operating environment will remain largely supportive over the next 12- to 18-months, which mitigates its high geographic concentration and the increase in the company's financial leverage in the second half of 2018, Moody's said.

Melco Resorts Finance's adjusted debt-to-EBITDA increased to about 3.3x in 2018, from 2x a year earlier as its debt increased by $1.1 billion, the agency said.

That was mainly to help fund a share repurchase by its parent, Melco Resorts & Entertainment Ltd., as well as the parent's increase of its stake in its Philippine subsidiary, Moody's said.

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