Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

High Yield Experts

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

Credit

Melco Resorts' Q2/19 results were above expectations, considering its weaker showing during Q1. This was supported by increased VIP volumes at COD Macau, as well as higher win rates across most segments. Property EBITDA increased 24% y-o-y to USD 442 mn, though on a luck-adjusted basis, EBITDA rose only 8% on USD 389 mn. Going forward, we expect lower but still positive earnings growth, in view of the increasingly challenging industry conditions. Financial metrics weakened during the quarter, with Debt/LTM EBITDA rising to 3.9x (FYE 2018: 3.7x) and fixed-charge coverage unchanged at a weak 2.2x. The increased debt was to fund half of the Crown Resorts acquisition, with the remaining half due to close by September. We expect the company's leverage to weaken further owing to the Crown acquisition, expected capex spending of USD 1.4 bn for Studio City Phase 2, and upfront capex for the COD Cyprus resort. Moreover, MLCO has an aggressive dividend policy, as it pays out a substantial portion of its cash flows in dividends. Our fundamental Credit Bias on MLCO remains “Negative”, and we maintain our "Hold" recommendation on the MPEL notes.

   Melco Resorts' Q2/19 results were above expectations, considering its weaker showing during Q1. This was supported by increased VIP volumes at COD Macau, as well as higher win rates across most segments. Property EBITDA increased 24% y-o-y to USD 442 mn, though on a luck-adjusted basis, EBITDA rose only 8% on USD 389 mn. Going forward, we expect lower but still positive earnings growth, in view of the increasingly challenging industry conditions.    Financial metrics weakened during the quarter, with Debt/LTM EBITDA rising to 3.9x (FYE 2018: 3.7x) and fixed-charge coverage unchanged at a weak 2.2x. The increased debt was to fund half of the Crown Resorts acquisition, with the remaining half due to close by September. We expect the company's leverage to weaken further owing to the Crown acquisition, expected capex spending of USD 1.4 bn for Studio City Phase 2, and upfront capex for the COD Cyprus resort. Moreover, MLCO has an aggressive dividend policy, as it pays out a substantial portion of its cash flows in dividends.    Our fundamental Credit Bias on MLCO remains “Negative”, and we maintain our "Hold" recommendation on the MPEL notes. 

Melco Resorts - Earnings Flash - H1 FY 2019 Results - Lucror Analytics

Melco Resorts & Entertainment

Melco Resorts - Earnings Flash - H1 FY 2019 Results - Lucror Analytics