Macau’s Melco Resorts & Entertainment is expected to reduce its operating leverage, calculated as Adjusted DEBT/EBITDA, from around 6.7x as of 30 June 2025 to around 5.4x in 2026 due to a continued increase in its revenues and profits.
The forecast by ratings agency Moody’s also estimates that Studio City – the Macau integrated resort of which Melco holds a controlling 54.9% interest – will decrease its leverage ratio from 8.1x to 6.2x during the same period.
Moody’s this week affirmed the ratings of core Melco subsidiaries, specifically the Ba3 corporate family rating of Melco Resorts Finance Limited, the B1 CFR and senior unsecured ratings of Studio City Finance Limited and the Ba3 backed rating on the USD senior secured bonds of Studio City Company Limited, maintaining a stable outlook.
