Moody's assigns MGM loan Ba3

Moody's Investors Service said it assigned Metro-Goldwyn-Mayer Inc. (MGM) a Ba2 corporate family rating and a Ba2-PD probability of default rating.

The agency also assigned a Ba3 rating to the company's proposed $200 million second-lien senior secured term loan.

The outlook is stable.

Proceeds will be used for general corporate purposes.

Moody's said MGM's Ba2 corporate family rating reflects the strong asset value of the company's deep library consisting of roughly 4000 feature films and 10,500 episodes of television programming. In Moody's opinion, the company's rich and extensive vault of legendary films and television programming distinguishes it from other independent film studios that are solely reliant on the feature film business for revenues and cash flows.

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