S&P puts Melco Resorts units on watch

S&P said it placed all its ratings for Melco Resorts (Macau) Ltd. and Studio City Co. Ltd. and their debt on CreditWatch with negative implications. Both are subsidiaries of Melco Resorts & Entertainment Ltd.

“The CreditWatch placement reflects our view that Melco Resorts & Entertainment Ltd. (MLCO) group's key credit measures could exceed our threshold for the current rating if the impact of the coronavirus outbreak continues into the second and third quarter of 2020,” said S&P in a press release.

With the majority of its EBITDA generated in Macau, Melco Resorts & Entertainment’s debt-to-EBITDA ratio is likely to exceed 3.5x in 2020 if the impact of the epidemic lasts into the second or third quarter of this year, the agency said.

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