S&P affirms MGM Mirage

Standard & Poor's said it affirmed the ratings on MGM Mirage, including the BB corporate credit rating, and removed them from CreditWatch, where they were placed with positive implications Aug. 22.

The outlook is positive.

The affirmation follows an announcement that the company's board approved building a major resort casino project in Atlantic City, N.J., for $4.5 billion to $5 billion. This comes after Dubai World's bid to acquire a 50% share of the company's CityCenter development and buy a meaningful stake in MGM Mirage.

The BB rating reflects the company's active growth strategy and significant reliance on the Las Vegas Strip for a majority of its cash flow, according to the agency.

For the 12 months ended June 30, the company's debt-to-EBITDA ratio was 6.2 times. The agency previously said the company's leverage would need to be between 4 times and 5 times to support a BB+ rating.

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