Moody’s lifts MGM Growth

Moody's Investors Service said it upgraded the corporate family rating of MGM Growth Properties LLC to Ba3 from B1.

The outlook is stable.

MGM Growth Properties Operating Partnership, LP’s senior secured bank credit facility also was upgraded to Ba3 from B1 and its senior unsecured rating was upgraded to B1 from B2.

Key strengths supporting the corporate family rating upgrade include the positive benefits of the company’s relationship with MGM Resorts International, Moody’s said.

The upgrades also consider the REIT's high quality assets, portfolio tenanted through a master lease by a leading industry operator with a long term track record and the company's solid leverage and cash flow metrics with net debt-to-EBITDA of 5.8x, the agency said.

Credit challenges include the REIT's high tenant, asset and geographic concentrations, Moody’s said, and MGM Resorts' effective operational control of the REIT.

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