S&P rates MGM Resorts notes B-

Standard & Poor's said it assigned its B- issue-level and 4 recovery ratings to MGM Resorts International's proposed $700 million senior unsecured notes.

The 4 recovery rating reflects an expectation of average recovery for lenders in the event of a payment default.

All other ratings, including the B- corporate credit rating, remain unchanged. The outlook is positive.

S&P said the corporate credit rating on MGM reflects its assessment of the company's financial risk profile as highly leveraged and its business risk profile as satisfactory.

"Our assessment of MGM's financial risk profile as highly leveraged reflects its high debt leverage and thin EBITDA coverage of interest, which, based on our performance expectations, would preclude positive free operating cash flow generation in either 2012 or 2013," said S&P credit analyst Melissa Long in a news release.

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