Fitch lifts MGM Resorts

Fitch Ratings said it upgraded MGM Resorts International’s and MGM China Holdings Ltd.’s issuer default ratings to B+ from B and BB from BB-, respectively.

The upgrades include MGM Resorts’ senior secured credit facility rating to BB+ with recovery rating of RR1 from BB with recovery rating of RR1, senior unsecured notes rating to BB with recovery rating of RR2 from B+ with recovery rating of RR3 and convertible senior notes rating due 2015 to BB with recovery rating of RR2 from B+ with recovery rating of RR3.

The issuer default ratings on MGM China Holdings, Ltd. and MGM Grand Paradise SA (co-borrowers) also were upgraded to BB from BB- and senior secured credit facility rating to BBB- from BB+.

The outlook remains positive.

The upgrades reflect the company’s strong performance on the Las Vegas Strip and in Macau, S&P said, as well as longer-term positive outlooks for these markets.

The upgrades also consider MGM’s improving free cash flow profile bolstered by the company’s declining interest expense and distributions from MGM China, the agency said.

Fitch rates Dominion Resources notes BBB-

Fitch Ratings said it assigned a BBB- rating to Dominion Resources, Inc.’s $685 million issuance of enhanced junior subordinated notes due in 2054.

The 5.75% 2014 series A notes will replace a like amount of existing 8.375% series A enhanced junior subordinated notes, which were simultaneously called for redemption.

The interest savings reduce consolidated interest expense by about 2% and results in a modest improvement in coverage metrics, the agency said.

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