Fitch upgrades debt covering MGM Resorts International
Fitch Ratings said Friday the Strip's economic recovery has progressed to the point where the investors service upgraded the debt covering MGM Resorts International, and assigned ratings to CityCenter and the MGM Grand Macau.
In a research report, Fitch gaming analyst Michael Paladino said the recovery on the Strip is in line with the ratings service's expectation for 2011.
"(The) current trends (and) forward indicators have not shown any material weakness in the Las Vegas Strip recovery story," Paladino said.
He cautioned, however, that the global and U.S. economic outlook has "deteriorated considerably over the past few months," which could negatively affect the pace of recovery on the Strip and other gaming markets next year and in 2013.
Fitch upgraded MGM Resorts' $12 billion debt to B- from CCC. Fitch also assigned a B- rating to CityCenter's debt, and a rating of B+ to debt covering the MGM Grand Macau. MGM Resorts owns 50 percent of CityCenter and 51 percent in the MGM Grand Macau.
Paladino said MGM Resorts "has solid near-term financial flexibility."
Paladino also said CityCenter's credit profile is tied to the Strip's recovery.
