Moody’s: MCE Finance unaffected on demerger

Moody's Investors Service said that Crown Resorts Ltd.’s (Baa2, review for downgrade) plan to demerge Melco Crown Entertainment Ltd. (unrated) – the parent of MCE Finance Ltd. (Ba3 stable) – has no immediate impact on MCE Finance's Ba3 corporate family rating, Ba3 senior unsecured rating or stable outlook.

On June 15, Crown Resorts announced its restructuring plan, which involves a demerger of its international investments to create a new and separately listed company. As a result, Crown Resorts would transfer its 27.4% interest in Melco Crown Entertainment to this new entity and no longer be a shareholder of Melco Crown Entertainment.

"We believe Crown Resorts' restructuring, if it materializes, will not have material impact on MCE Finance's credit profile," Moody's vice president and senior credit officer Kaven Tsang said in a news release.

"MCE Finance has adequate liquidity, which mitigates the risk of a potential redemption of the company's $1 billion bonds as a result of the restructuring."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.