Moody’s upgrades Studio City

Moody's Investors Service said it upgraded Studio City Finance Ltd.'s corporate family rating to B1 from B2 and its senior unsecured rating to B2 from B3.

At the same time, the agency upgraded the senior secured ratings of Studio City Co. Ltd. to Ba3 from B1.

The outlooks are stable.

"The ratings upgrade reflects Studio City's improving business profile, following its successful ramp-up and the recovery in Macao's overall gross gaming revenue (GGR) since 3Q2016, which has in turn enhanced its earnings and credit metrics," Stephanie Lau, Moody's vice president and senior analyst, said in a news release.

"The action also reflects a one-notch uplift based on Moody's expected likelihood of extraordinary support from its parent – Melco Resort & Entertainment Ltd. – given Studio City's increasing importance to the parent and the parent's solid financial flexibility."

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