Fitch Ratings has affirmed the Issuer Default Ratings (IDRs) of MGM Resorts International and its subsidiaries at “BB-” with a stable outlook, citing the company’s “mid-5x EBITDAR leverage, conservative financial policy and robust liquidity position. ”
The subsidiaries include Macau entity MGM China Holdings Limited, of which MGM Resorts holds a controlling 56% stake.
In a note, Fitch described MGM’s expansive scale, strong competitive position and diversification as positive factors in the ratings but noted this was offset by the company’s active development plan, earnings volatility from high-end play in both Las Vegas and Macau, increasing cost pressure and asset light strategy, which could affect financial flexibility.
