Fitch rates MGM Grand Paradise loan BB

Fitch Ratings said it assigned a BB rating with a recovery rating of RR2 to MGM Grand Paradise, SA's $2 billion senior secured credit facility.

The facility includes $1.45 billion revolver and $550 million term loan, Fitch said.

Fitch also said it affirmed the B+ issuer default rating on MGM Grand Paradise.

The agency also affirmed the B- issuer default rating on MGM Resorts International, along with its senior secured notes due 2013, 2014, 2017 and 2020 at B- with a recovery rating of RR1, senior credit facility at B with a recovery rating of RR3, senior unsecured notes at B- with a recovery rating of RR4, convertible senior notes due 2015 at B- with a recover rating of RR4 and senior subordinated notes at CCC with a recovery rating of RR6.

The agency also said it assigned a B+ issuer default rating to MGM China Holdings, Ltd., MGM Grand Paradise's parent and co-borrower under the credit facility.

The outlook is positive.

The credit facility consists of a $550 million term loan and $1.45 billion in revolver commitments, of which $500 million will be contingent on MGM Grand Paradise's Cotai land concession contract being published in the Official Gazette of Macau, Fitch said.

The proceeds will be used to repay the amount outstanding on MGM Grand Paradise's prior term loan and to fund MGM's $2.5 billion Cotai project, the agency said.

The credit facility will mature in October 2017 with the term loan amortizing by $55 million to $82.5 million per quarter 15 months prior to the maturity, resulting in a $165 million balloon payment at maturity, Fitch said.

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