S&P: MGM Mirage view negative

Standard & Poor's said it revised the outlook on MGM Mirage to negative from stable and affirmed the BB corporate credit rating.

The outlook revision reflects concern regarding two specific challenges over the next several quarters, S&P said. Incremental spending could have a meaningful impact on the company's liquidity profile, and the agency said it is concerned with the company's ability to remain in compliance with the covenants under its bank facility.

The BB rating reflects somewhat limited geographic diversity and high debt leverage, the agency noted.

Ratings also reflect a satisfactory business risk profile, substantial source of cash flow and solid long-term prospects, S&P noted.

For the 12 months ended June 30, lease-adjusted debt leverage was 6.1 times, up from 4.9 times as of Dec. 31, 2007.

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