Fitch rates MGM Mirage notes BB

Fitch Ratings said it assigned a BB rating to MGM Mirage's $750 million 13% senior secured notes due 2013 and affirmed its BB- issuer default and senior unsecured ratings and B senior subordinated rating.

The outlook is negative.

The bonds priced at 93.132, a discount that resulted in a 15% yield and net proceeds to MGM of $687 million, which will be used to repay a portion of its $7 billion credit facility and for general corporate purposes.

The agency said MGM's ability to access capital markets and enhance its liquidity somewhat mitigates its concern regarding debt maturities of $1.3 billion in 2009 and near-term CityCenter funding requirements.

However, MGM's longer-term liquidity profile and near-term operating environment remain of concern to Fitch. The second phase of the $3 billion CityCenter financing still needs to be completed, as only $1.8 billion has been finalized to date, and MGM has an additional $1.1 billion of bond maturities in 2010.

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