S&P rates MGM Resorts notes B-, view to positive

Standard & Poor's said it affirmed the B- corporate credit rating on MGM Resorts International and revised the outlook to positive from stable.

The agency also said it assigned a B- rating and 4 recovery rating to its proposed $750 million senior unsecured notes.

The proceeds will be used to repay a portion of MGM's non-extended term loans, S&P said. The 4 recovery rating reflects 30% to 50% expected recovery in a default.

The agency also said it assigned a B- rating and 3 recovery rating to MGM's extended credit facilities, which consist of an about $982 million class A-2 revolving credit facility, $471 million class C term loan and $324 million class E term loan, all due February 2015.

The 3 recovery rating reflects 50% to 70% expected recovery in a default.

The agency also said it assigned a B- rating and 4 recovery rating to about $360 million non-extended revolving credit facility due February 2014.

The outlook revision to positive reflects strong performance in 2011 and an expectation that MGM will continue to benefit from the improving performance trends on the Las Vegas Strip, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.