Moody's gives Ba3 to Studio City notes

Moody's Investors Service said it gave a Ba3 rating to the dollar-denominated senior secured bonds to be issued by Studio City Co. Ltd., which is wholly owned by Studio City Finance Ltd. through Studio City Investments Ltd.

The bonds will be guaranteed by Studio City Investments Ltd. and all its subsidiaries, other than Studio City Co.

“The Ba3 rating on the proposed U.S. dollar bonds is one notch higher than Studio City's B1 corporate family rating (CFR), because the bonds benefit from the first lien on the company's major assets, including the property on which the Studio City project is based, and shares in subsidiaries. This structure means that the bonds rank ahead of other unsecured claims and indebtedness,” Moody’s said in a press release.

The proceeds together with new equity issuance will be used to fund the Studio City phase two project and for general corporate purposes.

The outlook is negative.

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