Fitch downgrades MGM

Fitch Ratings said it downgraded MGM Mirage's issuer default rating to BB- from BB, senior credit facility to BB- from BB, senior notes to BB- from BB and senior subordinated notes to B from B+.

The outlook remains negative.

According to the agency, the downgrade affects MGM's $7 billion credit facility, $6.9 billion of outstanding senior unsecured debt and $864 million of outstanding senior subordinated debt as of June 30.

The downgrade reflects the fact that broad economic trends have continued to weaken, along with Las Vegas operating trends, the agency said.

In addition, credit market turbulence has increased since the issuer's outlook was revised to negative, the agency noted, and its refinancing risk is substantial as it is still trying to secure additional CityCenter funding while trying to refinance $1.28 billion of debt in the next 12 months.

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