Fitch upgrades MGM Resort

Fitch Ratings said it upgraded MGM Resort International's issuer default rating to BB from B+, along with its senior secured credit facility to BBB- with recovery rating of RR1 from BB+ with recovery rating of RR1.

The agency also said it affirmed the rating on the company’s senior unsecured notes at BB with recovery rating of RR3.

Fitch also said it affirmed the issuer default ratings of MGM China Holdings, Ltd. at BB and the issuer default ratings on co-borrower MGM Grand Paradise, SA at BB, along with its senior secured credit facility at BBB- with recovery rating of RR1.

The outlook is stable.

The ratings reflect MGM's de-leveraging toward the company's target of less than 5x, which is expected to occur by 2017, Fitch said.

This is an acceleration relative to the agency’s previous forecast with the expected trajectory largely attributable to MGM's faster-than-expected implementation of its $300 million profit growth plan and stronger than expected Las Vegas Strip trends, the agency said.

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