Moody's Investors Service lowered the outlook for a subsidiary of Macau casino operator Melco Crown Entertainment Ltd. on Wednesday, citing softer-than-expected fourth-quarter results.
The ratings agency dropped Melco Crown Gaming (Macau) Ltd.'s outlook for its "Ba3" corporate family and secured debt ratings to negative from stable.
Analyst Kaven Tsang said in a statement that the lower outlook accounts for the weaker quarterly results and softer-than-expected earnings before interest, taxes, depreciation and amortization, which were disappointing given the relatively stable Macau gaming market.
Macau, the only place is China where gambling is legal, has seen strong gaming revenue results for the past several months.
Shares of Melco Crown Entertainment dropped 23 cents, or 5.6 percent, to $3.86 in afternoon trading. In the past year, the stock has traded in a range of $2.27 to $8.45.
Copyright 2010 AP News
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