Moody’s raises MGM, rates revolver Ba1

Moody's Investors Service said it upgraded Metro-Goldwyn-Mayer Inc.'s (MGM) corporate family rating to Ba1 from Ba2 and probability of default rating to Ba1-PD from Ba2-PD.

Concurrently, the agency assigned a Ba1 (LGD3) rating to the company's amended and restated $1 billion first-lien senior secured revolving credit facility due June 25, 2021.

The outlook is stable.

Moody’s said the upgrade reflects significant improvement in MGM's credit metrics as a result of material reduction in gross debt following the term loan paydown earlier this year.

In the second quarter of 2016, MGM repaid in full its $300 million second-lien term loan with cash on hand and borrowings under its first-lien revolving credit facility, which currently has $160 million outstanding under it, the only debt in the capital structure.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.