S&P rates Studio city notes B+

S&P said it affirmed a BB- issuer credit rating on the Studio City Co. Ltd.

The agency also said it affirmed the BB- rating on senior secured notes issued by Studio City and the B+ rating on the senior unsecured notes issued by its wholly owned finance arm, Studio City Finance Ltd.

The outlook is stable.

The agency also said it assigned a B+ rating to the proposed guaranteed senior unsecured notes issued by Studio City Finance.

The notes are rated one notch lower than the issuer credit rating of Studio City due to their subordination to the senior secured notes, S&P said.

The ratings reflect that the company's debt leverage remains high even after the debt reduction through an initial public offering by its parent, Studio City International Holdings Ltd., on the New York Stock Exchange, the agency explained.

Studio City received about $400 million in proceeds from the listing, which it used to partially redeem its $825 million senior notes due in 2020, S&P said.

The company will remain highly leveraged with debt-to-EBITDA ratio estimated at 5x to 6x in 2018 and 7x to 8x in 2019, the agency said.

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