S&P: MGM Mirage unaffected by purchase

Standard & Poor's said Tuesday the announcement by MGM Mirage (BB+/stable/--) that it had reached an agreement on the terms of a recommended cash acquisition of U.K.-based Wembley plc has no impact on the rating or outlook of MGM.

S&P said that while the affect of the transaction to debt leverage is not sufficient enough to warrant a rating or outlook revision, given MGM's other known projects and potential investment opportunities, there exists no room to further increase debt leverage at the current rating level with a stable outlook.

S&P said it does not anticipate that MGM will have the capacity to meaningfully reduce debt balances in the next two years given ongoing projects such as the Bellagio spa tower and the expected development of a permanent casino facility in Detroit. However, the expectation of an improved operating environment in Las Vegas is expected to result in EBITDA growth, leading to modestly improved credit measures during this time.

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