Moody's cuts MGM Mirage to SGL-3

Moody's Investors Service said it lowered MGM Mirage's speculative grade liquidity rating to SGL-3 from SGL-2.

The change reflects a 12-month projected liquidity cushion that has significantly declined due to upcoming maturity of about $1.4 billion in notes coupled with capital spending that MGM has planned for CityCenter and the Detroit permanent facility, the agency said.

SGL rating improvement is possible in the near-term because MGM will likely refinance its upcoming amortizations, Moody's said, though level and timing of new debt issuance could be flexible based on debt capital markets environment. However, increase in the SGL rating to above SGL-2 is not likely due to the upcoming period of relatively high capital spending, the agency added.

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