Moody's upgrades MGM Resorts

Moody's Investors Service said it upgraded MGM Resorts International's corporate family and probability of default ratings to B2, its senior secured rating to Ba2 and its senior unsecured notes to B3. MGM has an SGL-3 speculative grade liquidity rating.

The outlook is stable.

Moody's said the B2 rating reflects its view that continued earnings improvement at MGM's 51% owned Macau joint venture increases the likelihood of a dividend distribution that would help improve the company's liquidity profile.

Moody's said it also reflects the view that positive lodging trends in Las Vegas will continue through 2012 and will help improve MGM's leverage and coverage metrics modestly.

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