Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

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.

Credit

We view Studio City as “Medium Risk” on the LARA scale. The company enjoys implied credit support from its 57% owner, Melco Resorts & Entertainment (MLCO). Studio City’s operating performance has improved in recent years, following a slow ramp-up. Our view takes into account the continued growth in gaming revenue across Macau and MLCO’s good operating track record, which is offset by the single-asset and regulatory risks. Our Credit Bias is “Stable”. We expect OCF and EBITDA to continue growing marginally, supported by increased gaming volumes, especially from the mass market segment. That said, expansionary capex will be required to fund the asset’s Phase II development. We view Studio City as “Moderate” on the LAGA scale, similar to MLCO. Despite SCCL’s 37% ownership by private equity investors, we view MLCO owner Lawrence Ho as the key decision maker. Disclosures are adequate, as quarterly financials will be provided on NYSE post IPO.

   We view Studio City as “Medium Risk” on the LARA scale. The company enjoys implied credit support from its 57% owner, Melco Resorts & Entertainment (MLCO). Studio City’s operating performance has improved in recent years, following a slow ramp-up. Our view takes into account the continued growth in gaming revenue across Macau and MLCO’s good operating track record, which is offset by the single-asset and regulatory risks.    Our Credit Bias is “Stable”. We expect OCF and EBITDA to continue growing marginally, supported by increased gaming volumes, especially from the mass market segment. That said, expansionary capex will be required to fund the asset’s Phase II development.    We view Studio City as “Moderate” on the LAGA scale, similar to MLCO. Despite SCCL’s 37% ownership by private equity investors, we view MLCO owner Lawrence Ho as the key decision maker. Disclosures are adequate, as quarterly financials will be provided on NYSE post IPO. 

Studio City - Tear Sheet - Lucror Analytics

In this month’s “In-Focus” section, we discuss Corporate Governance in Chinese Companies. Specifically, we highlight: [1] the nascent development of the Chinese corporate governance regime; [2] the lack of strong external examination/review; [3] different types of Chinese public companies; and [4] Lucror’s approach to assessing corporate governance. The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the "In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.

   In this month’s “In-Focus” section, we discuss Corporate Governance in Chinese Companies. Specifically, we highlight: [1] the nascent development of the Chinese corporate governance regime; [2] the lack of strong external examination/review; [3] different types of Chinese public companies; and [4] Lucror’s approach to assessing corporate governance.    The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the "In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market. 

Asia HY Monthly - Corporate Governance In Chinese Companies - Lucror Analytics

Macau

Studio City Co Ltd operates as a hotel. The Company offers lodging, dining, entertainment, casino, meetings, events, and other services. Studio City serves customers in Macau.

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Studio City Co Ltd (0812321D MA)

Studio City - Tear Sheet - Lucror Analytics

We view Studio City as “Medium Risk” on the LARA scale. The company enjoys implied credit support from its 57% owner, Melco Resorts &...

Lucror Analytics

Asia HY Monthly - Corporate Governance In Chinese Companies - Lucror Analytics

In this month’s “In-Focus” section, we discuss Corporate Governance in Chinese Companies. Specifically, we highlight: [1] the nascent development...

Lucror Analytics

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