Moody's: MGM Resorts notes B3

Moody's Investors Service said it assigned a B3 rating to MGM Resorts International's proposed $500 million senior unsecured notes due 2019.

Moody's also said it affirmed MGM's B2 corporate family and probability of default ratings, senior secured ratings at Ba2 (LDG 2, 14%), existing senior unsecured ratings at B3 (LGD 4, 69%) and senior subordinated notes at Caa1.

MGM's SGL-3 speculative-grade liquidity rating remains unchanged.

The outlook is stable.

The agency also said it affirmed Mandalay Resort Group's senior unsecured notes at B3 with LGD 4, 69% revised from LGD 5, 70%, along with its senior subordinated notes at Caa1 (LGD 6, 96%).

The proceeds will be used to repay a portion of its debt, consisting of a senior bank credit facility or other debt securities.

MGM's new note offering is a positive step towards refinancing its considerable debt maturities in 2012 and 2013, Moody's said.

The affirmation continues to reflect a view that positive lodging trends in Las Vegas will continue through 2012 and will help improve MGM's leverage and coverage metrics modestly, the agency said.

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