Rating the company\u2019s new notes, the agency offered an outlook of what it expects for the Macau segment of the business.\u00a0\u00a0<\/p>\n\n\n\n\n\n\n\n
Macau.- Fitch ratings agency rated MGM China and MGM International\u2019s latest US$750 million public offering BB-\/RR4, with a negative outlook in part because of expectations for its Macau Business. <\/p>\n\n\n\n
MGM issued senior notes this week with the goal of raising US$750 million for general corporate purposes, including refinancing existing debt. The agency viewed the move as neutral but said it potentially ads more permanent debt to the company\u2019s capital structure. <\/p>\n\n\n\n
MGM, however, has a strong liquidity position, with US$3.6 billion of cash and US$922 million available under its US$1.5 billion revolver. <\/p>\n\n\n\n
Fitch said the negative outlook on the new notes due 2028 \u201ccontinues to reflect the risks and uncertainty the global gaming industry is facing from the pandemic.\u201d <\/p>\n\n\n\n
The outlook evaluated that in the last quarter of 2019, MGM\u2019s Macau business represented about 23 per cent of its consolidated EBITDA, and for the last quarter of the current year it foresees a 19 per cent decline in revenues from the segment compared to last year\u2019s performance. <\/p>\n\n\n\n
However, it expects Macau to see a less severe drop than the Las Vegas business, where Fitch expects to see revenue drop 48 per cent year-on-year. <\/p>\n\n\n\n
Fitch said: \u201cMacau should see improved visitation in 4Q20, with China restarting broad visa issuances in late September.<\/p>\n\n\n\n
\u201cMGM’s two properties in Macau provide global diversification benefits and exposure to a market with favourable long-term growth trends\u201d it added. <\/p>\n\n\n\n
The negative outlook is also based on what Fitch believes to be reduced financial flexibility for MGM. <\/p>\n","protected":false},"excerpt":{"rendered":"
Rating the company\u2019s new notes, the agency offered an outlook of what it expects for the Macau segment of the business.\u00a0\u00a0<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Fitch Ratings assigned a BB-\/RR4 rating with a negative outlook to MGM China and MGM International's US$750 million senior notes offering, citing pandemic-related risks, reduced financial flexibility, and specific expectations for its Macau segment's revenue decline. Despite a strong liquidity position, the agency views the offering as potentially adding permanent debt to the capital structure, while noting Macau's long-term growth potential and improved visitation forecasts for Q4 2020.","focusai_entities":"Fitch Ratings, MGM China, MGM International, MGM","focusai_location":"Macau, China, Las Vegas","focusai_target_profile":"ceo_executive (1.0), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Macau Market Recovery?","query":"What specific visitation and GGR metrics does Fitch anticipate for Macau in 2021, and how do these projections compare to pre-pandemic levels and other major gaming jurisdictions?"},{"label":"Debt Structure Impact?","query":"How does the addition of US$750 million in senior notes alter MGM's overall debt maturity profile and leverage ratios, and what are the implications for future capital allocation strategies?"}],"footnotes":""},"categories":[161,16338,163,158],"tags":[17703,257,1616],"class_list":["post-10795","post","type-post","status-publish","format-standard","hentry","category-daily-news","category-east-asia-news","category-finance-news","category-slider-home","tag-fitch-ratings","tag-macau","tag-mgm"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/10795","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=10795"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/10795\/revisions"}],"predecessor-version":[{"id":10824,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/10795\/revisions\/10824"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=10795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=10795"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=10795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}