Thursday, March 18, 2010 | 10:37 a.m.
Moody's Investors Service today affirmed MGM Mirage's debt ratings, including its "Caa1 Corporate Family Rating;" and raised the company's "Speculative Grade Liquidity" rating to SGL-3 from SGL-4.
Moody's announcement follows a previously announced deal with many of MGM Mirage's lenders to refinance most of the $5.6 billion in debt under a credit facility by extending the maturity date.
The debt extension should help the company with liquidity issues during the recession that has reduced revenue at its hotels and casinos.
The rating outlook for the Las Vegas company remains stable, Moody's said.
"The upgrade of the SGL rating reflects the modest improvement in MGM's liquidity profile and financial flexibility following the extension of approximately $4.4 billion (78 percent) of its $5.6 billion credit facility (to 2014 from 2010) and closing of its $845 million senior secured note offering," Moody's said.
The note proceeds were used to repay loans under its senior credit facility and to pay related fees and expenses.
"However, MGM still faces significant debt maturities over the next two years," Moody's said.
Capital market transactions will be needed refinance 2011 maturities, Moody's said.