Fitch rates MGM notes CCC

Fitch Ratings said it has assigned a CCC/RR4 rating to MGM Mirage's $475 million of 11.375% unsecured notes due 2018.

The notes were priced at a 97.396% discount to yield 11.875%, the agency said, noting that the net proceeds will be used to reduce credit facility borrowings, and also for general corporate purposes.

The offering attempts to chip away at the company's most significant credit hurdle: the maturity of its $5.8 billion credit facility in 2011, which had $4.1 billion outstanding as of June 30, Fitch added.

After poor market demand for a proposed exchange offer that aimed to push some 2010 maturities out to 2016, MGM responded by issuing the unsecured private placement bonds, the agency said.

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