S&P revises outlook for MGM Resorts

Standard & Poor's revised its outlook for MGM Resorts International Thursday as the casino operator moved forward with its plans to sell more than $500 million in stock to help pay down debt.

The ratings service changed its view of MGM Resorts to stable from developing.

"The revision of the rating outlook to stable reflects some near-term improvement to MGM's still weak liquidity profile following the recent pricing of a primary common stock offering," Standard & Poors credit analyst Ben Bubeck said in a statement.

Bubeck said the stock sale indicates that the upside potential to the rating is limited in the near term.

Fitch Ratings Service revised its outlook for MGM Resorts to positive because of the pending stock sale, as well as other company efforts to reduce its debt.

Michael Paladino, Fitch's senior director, said the $250 million-plus offer MGM Resorts received for its 50 percent stake in Atlantic City's Borgata was at a valuation toward the high-end of Fitch's expected range.

He said a $125 million payment the company expects to receive this month from its MGM Grand Macau joint venture due to partial repayment of a loan, also helps MGM Resorts' refinancing and capital raising efforts.

"The last 18 months have better positioned the company to survive its liquidity crunch and create a more sustainable capital structure," Paladino said in a statement. "MGM continues to demonstrate solid access to capital despite the distressed nature of the credit profile."

Shares of MGM Resorts, traded on the New York Stock Exchange, closed at $11.56 Thursday, down 54 cents or 4.46 percent.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.