Fitch agency revealed that MGM Resorts fell in its rankings because of a “decreased financial flexibility” to face coronavirus crisis.<\/p>\n\n\n\n\n\n\n\n
Macau.- Fitch Ratings<\/strong><\/em> has downgraded MGM Resorts International\u2019s and MGM China Holdings\u2019 issuer default ratings as well as their unsecured debt due to \u201cdecreased financial flexibility following the recent sale-leaseback transactions as well as the severe disruption to global gaming caused by the coronavirus outbreak.\u201d<\/p>\n\n\n\n Fitch also revised the firms\u2019 rating outlook from stable to negative.<\/p>\n\n\n\n According to the agency, “the sale and leaseback of Bellagio and MGM Grand, the company\u2019s last two flagship Las Vegas Strip assets, reduce MGM\u2019s liquidity levers vis-\u00e0-vis ability to monetize assets and increase MGM\u2019s rent obligations to unaffiliated parties, most notably Blackstone Real Estate Income Trust.\u201d<\/p>\n\n\n\n \u201cThe unknown depth and duration of the coronavirus disruption and the increased cash burn that this would entail” are other reasons to take into consideration.<\/p>\n\n\n\n \u201cMGM is well-positioned from a liquidity standpoint to weather the near-term cash burn, which Fitch anticipates will be funded with cash on hand including the recent asset sale proceeds”, added the report.<\/p>\n","protected":false},"excerpt":{"rendered":" Fitch agency revealed that MGM Resorts fell in its rankings because of a “decreased financial flexibility” to face coronavirus crisis.<\/p>\n","protected":false},"author":2,"featured_media":3239,"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 has downgraded MGM Resorts International and MGM China Holdings' issuer default ratings and unsecured debt, revising their outlook to negative. This action stems from decreased financial flexibility following sale-leaseback transactions of key Las Vegas assets and the severe disruption caused by the coronavirus outbreak. The agency cited increased rent obligations and reduced asset monetization capabilities as primary concerns, despite MGM's near-term liquidity position.","focusai_entities":"MGM Resorts International, MGM China Holdings, Fitch Ratings, Blackstone Real Estate Income Trust","focusai_location":"Macau, USA","focusai_target_profile":"ceo_executive (0.9), operator_casino (0.8), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Impact on Capital Allocation","query":"How will the reduced financial flexibility and increased fixed obligations impact MGM Resorts' future capital allocation strategies for development projects or M&A activities in key gaming verticals?"},{"label":"Outlook for Macau Operations","query":"Given the downgrade, what is Fitch's revised outlook on MGM China's ability to navigate the Macau market's recovery, particularly concerning its concession renewal and competitive positioning?"}],"footnotes":""},"categories":[160,161,16338,163,167],"tags":[12436,257,1618],"class_list":["post-4962","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia-pacific","category-daily-news","category-east-asia-news","category-finance-news","category-news-region","tag-casinos","tag-macau","tag-mgm-china"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/4962","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=4962"}],"version-history":[{"count":4,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/4962\/revisions"}],"predecessor-version":[{"id":777009472,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/4962\/revisions\/777009472"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/3239"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=4962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=4962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=4962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}