Moody’s upgrades MGM China credit outlook

The company’s senior unsecured notes rating has been affirmed at B1.

Macau.- Moody’s Investor Services has upgraded MGM China’s credit outlook from negative to stable. The company’s senior unsecured notes rating has been affirmed at B1.

Moody’s also confirmed parent company MGM Resorts’ ratings. It said the company’s US regional and Las Vegas operations were strong and liquidity is good, with substantial cash balances and revolver availability.

During the fourth-quarter earnings call, CEO Bill Hornbuckle said MGM China broke through the 20 per cent market share barrier in Macau in January. The company posted net revenue of US$983m for the fourth quarter of 2023, an increase of 462 per cent over the prior year quarter and 35 per cent compared to the fourth quarter of 2019. MGM Macau recorded revenue of HK$3.05bn (US$390m) and adjusted property EBITDAR of HK$824.7m (US$105.5m), MGM Cotai HK$4.62bn (US$590.8m) and HK$1.37bn (US$175.2m).

For the full year 2023, MGM China posted net revenue of HK$24.7bn (US$3.2bn), up 369 per cent in year-on-year terms and up 9 per cent when compared to 2019, before the Covid-19 pandemic.

MGM Resorts is also developing an integrated resort (IR) in Osaka, Japan. Construction is scheduled to commence in 2025 for a 2030 opening.