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\tFitch Ratings Inc has upgraded MGM Resorts International\u2019s rating to \u2018B+\u2019 from \u2018B\u2019 and subsidiary MGM China Holdings Ltd\u2019s rating to \u2018BB\u2019 from \u2018BB-\u2019. The rating outlook remains positive, the rating agency said in a note on Thursday.<\/p>\n
\tMGM China\u2019s stand-alone credit profile is close to investment grade. But since MGM Resorts controls 51 percent of MGM China, Fitch links the rating of the Macau-based casino operator to the parent\u2019s rating.<\/p>\n
\tThe upgrade and the positive outlook reflect MGM Resorts\u2019 strong performance on the Las Vegas Strip and in Macau as well as Fitch\u2019s longer-term positive outlooks for these markets, the agency said in the note.<\/p>\n
\t\u201cThe rating actions take into account MGM Resorts\u2019 improving FCF [free cash flow] profile bolstered by the company\u2019s declining interest expense and distributions from MGM China,\u201d it added.<\/p>\n
\tMGM Resorts has a US$5 billion development pipeline, among the largest in the gaming industry. It includes the US$2.9 billion under-construction MGM Cotai project, which \u201cis fully funded between cash on hand, projected FCF and US$1.45 billion available on the revolver in Macau,\u201d Fitch said.<\/p>\n
\tIn the U.S., MGM Resorts started construction on its Maryland project this summer and a Springfield project is pending the results of a referendum set for this November in Massachusetts.<\/p>\n
\tFitch estimates that MGM Resorts will need to access to additional US$1 billion to US$1.5 billion in capital to meet its funding needs through 2016.<\/p>\n
\tThe rating agency earlier this month cut its full-2014 growth forecast for Macau\u2019s casino gross gaming revenue to 4 percent. Continued weakness in the VIP segment led to the downward revision.<\/p>\n
\tIn Thursday\u2019s note, Fitch said MGM Resorts\u2019 expected growth on the Las Vegas Strip might offset the recent softness in Macau until 2016, when its Cotai project is schedule to open.<\/p>\n
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Fitch Ratings Inc has upgraded MGM Resorts International\u2019s rating to \u2018B+\u2019 from \u2018B\u2019 and subsidiary MGM China Holdings Ltd\u2019s rating to \u2018BB\u2019 from \u2018BB-\u2019. The rating outlook remains positive, the rating agency said in a note on Thursday. MGM China\u2019s…<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-8077","post","type-post","status-publish","format-standard","hentry","category-latest-casino-news"],"_links":{"self":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/8077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/comments?post=8077"}],"version-history":[{"count":0,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/8077\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/media?parent=8077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/categories?post=8077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/tags?post=8077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}