Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers M > Headlines for MGM Mirage > News item |
Moody's rates MGM Mirage notes
Moody's Investors Service said it assigned a Ba1 rating to MGM Mirage's $225 million 5.875% guaranteed senior secured notes due 2014 and confirmed the company's existing ratings.
The proceeds from the offering will be used to repay existing loans outstanding under the company's $1.5 billion revolver, pay fees and expenses and for general corporate purposes.
The outlook remains stable.
Moody's said the rating actions reflect the high quality and good location of the company's properties, leading margins, and adequate debt protection measures. The ratings consider the company's earnings concentration in Nevada and its exposure to potentially more volatile table games.
Moody's expects capital spending and share repurchase activity to consume substantially all of the company's cash flow and asset sale proceeds in 2004, and so improvement in credit statistics is predominately reliant upon earnings growth. At year-end 2003, leverage (debt to EBITDA) and interest coverage (EBIT to interest) were at 4.9 times and 2.0x, respectively.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.