Moody’s gives B3 to MGM Resorts notes

Moody's Investors Service said it assigned a B3 rating to MGM Resorts International's proposed $1 billion senior unsecured guaranteed note offering.

MGM currently has a B2 corporate family rating, B2-PD probability of default rating, Ba2 senior secured ratings, B3 senior unsecured ratings and provisional Caa1 senior subordinated ratings.

The speculative grade liquidity rating is SGL-3 and the outlook is stable.

Proceeds from the new notes can be used to repay a portion of MGM's existing $1.45 billion 4.25% convertible notes due in April 2015 and/or $875 million 6 5/8% senior notes due in July 2015. MGM can also use all or a portion of the proceeds to fund the company's Maryland and Massachusetts casino resort development projects that will require significant capital spending through 2017.

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