S&P upgrades Metro-Goldwyn

Standard & Poor's said it raised the corporate credit rating on Metro-Goldwyn-Mayer Inc. to B from B-.

The agency also said it raised the ratings on its senior secured credit facilities to BB- with the recovery rating unchanged at 1, indicating 90% to 100% expected recovery in a default.

The outlook is stable.

The upgrade reflects a view that the company has stabilized its library cash flow since emerging from bankruptcy in December 2010, S&P said.

Although the company faces risks associated with the resumption of film production activities in 2012, releases scheduled at the end of the year will enable it to regain modest profitability in new production, the agency said.

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