• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Friday 25 July 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
No Result
View All Result

Fitch Assigns “BB-” rating to MGM Resorts and MGM China, one notch higher than other ratings agencies

Ben Blaschke by Ben Blaschke
Tue 26 Mar 2024 at 15:54
Is Macau still investible?

MGM Cotai

13
SHARES
319
VIEWS
Print Friendly, PDF & Email

Ratings agency Fitch has assigned a first time “BB-” Long-Term Issuer Default Rating (IDR) to both MGM Resorts International and its Macau subsidiary MGM China Holdings Limited, citing the company’s scale, robust liquidity position and global diversification as key assets.

It also pointed to the continued rebound in Macau for both of MGM’s properties – MGM Cotai and MGM Macau – as supportive of further near-term growth but warned the company’s active development plans in Japan, Dubai and potentially New York and related cost pressures could affect financial flexibility during weaker economic conditions.

In a separate note, CBRE Credit Research analyst Colin Mansfield observed that the Fitch rating of MGM Resorts and MGM China is one notch higher than that of S&P and Moody’s and a “welcomed view” on MGM given rating agencies’ varying treatments of lease-equivalent debt – an issue linked to MGM’s recent moves to sell off its wholly-owned assets in Las Vegas.

“We’ve long held that MGM is a ‘BB’ category credit and its debt trades as such,” Mansfield wrote.

In issuing its first-time ratings, Fitch also provided for a Stable Outlook which it said, “reflects the company’s expectation that MGM’s leverage will remain stable and that liquidity is sufficient to fund future growth opportunities.”

The agency is predicting group-wide revenues to grow by around 4% year-on-year in 2024 with flat growth in Las Vegas and a low single-digit decline in the regional markets to be more than offset by high-teen growth in Macau.

“The recovery in Macau has been strong following the removal of strict coronavirus policies in late 2022,” Fitch said. “Mass market baccarat was 109% of 2019 levels in 4Q23, while the overall market was at 75%. The lower overall percentage is due to changes in VIP regulations that have caused a material, and potentially permanent, change in the level of gaming revenues from that customer segment.

“However, MGM focuses primarily on mass market as opposed to VIP, and its market share has grown to over 15% in 2023 from 9%, as it benefits from receiving approximately 200 new tables under the concession and the continued ramp up of MGM Cotai.

“Customer reinvestment rates increased in 2023 as more operators focused on the mass market given the decline in the VIP market, but MGM China’s EBITDAR margins have not seen a material impact.”

It added that MGM’s two properties in Macau provide “global diversification benefits” and exposure to a market with favorable long-term growth trends, while future global diversification will come from the company’s Osaka resort project in Japan, its Dubai Porto Island development and a potential license in the New York City market.

RelatedPosts

MGTO says no apparent impact on visitor numbers from limitation on provision of free snacks in Macau casinos

Macau visitor arrivals rise 13.3% year-on-year to 2,891,003 in June

Fri 25 Jul 2025 at 05:45
IAG to launch weekly “The IAG Live Streaming Show” starting this Friday 25 July

IAG to launch weekly “The IAG Live Streaming Show” starting this Friday 25 July

Thu 24 Jul 2025 at 14:20
A New Macau

Sands China to adopt more aggressive approach to customer reinvestment in Macau due to recent underperformance, targets US$2.7 billion annual EBITDA

Thu 24 Jul 2025 at 06:16
Dr Wilfred Wong

The Londoner Macao shows benefits of multi-billion-dollar revamp as 2Q25 performance pushes Sands China revenues to US$1.79 billion

Thu 24 Jul 2025 at 05:17
Load More
Tags: Fitch RatingsMacauMGM ChinaMGM Resorts International
Share5Share1
Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

Current Issue

Editorial – An inconvenient truth

Editorial – An inconvenient truth

by Ben Blaschke
Fri 27 Jun 2025 at 15:21

It’s understandable that political observers, academics and members of the public in greenfield jurisdictions would express caution around the legalization...

Light & Wonder’s Siobhan Lane

Light & Wonder’s Siobhan Lane

by Ben Blaschke
Fri 27 Jun 2025 at 15:19

Siobhan Lane, Light & Wonder’s highly experienced CEO of Gaming, speaks to Inside Asian Gaming about the company’s ongoing transformation...

Honesty is the best policy

Honesty is the best policy

by Ben Blaschke
Fri 27 Jun 2025 at 14:13

The Thailand Entertainment Complex Roundtable brought industry stakeholders, politicians and supporters of the government’s Entertainment Complex Bill face to face...

Sri Lanka’s casino industry

Sri Lanka’s casino industry

by Shaun McCamley
Fri 27 Jun 2025 at 13:36

Industry veteran Shaun McCamley delves into the complex history of Sri Lanka’s casino industry at a time when the country...

Evolution Asia
Your browser does not support HTML5 video.
Aristocrat
GLI
Nustar
SABA
Mindslot
Solaire
Hann
Tecnet
NWR
Jumbo
568Win

Related Posts

MGTO says no apparent impact on visitor numbers from limitation on provision of free snacks in Macau casinos

Macau visitor arrivals rise 13.3% year-on-year to 2,891,003 in June

by Pierce Chan
Fri 25 Jul 2025 at 05:45

According to data from Macau’s Statistics and Census Service (DSEC), a total of 2,891,003 visitors arrived in Macau in June, representing a year-on-year increase of 13.3%. Mainland China remained the primary source of visitors to Macau in June, with 1,995,627...

Philippines IRs see combined GGR fall 10.6% to US$778 million in 2Q25

Philippines IRs see combined GGR fall 10.6% to US$778 million in 2Q25

by Ben Blaschke
Thu 24 Jul 2025 at 17:43

The Philippines’ integrated resorts generated gross gaming revenues of Php93.4 billion (US$1.65 billion) in the first six months of the year, accounting for around 43.4% of the local gaming industry’s GGR according to information from Alejandro Tengco – the Chairman...

Pitch! lands at iconic Sydney Opera House for Regulating the Game 2026

Pitch! lands at iconic Sydney Opera House for Regulating the Game 2026

by Newsdesk
Thu 24 Jul 2025 at 14:49

Pitch! @RTG, the dynamic innovation showcase of the Regulating the Game conference, returns on 10 March 2026 with even more energy, impact and ingenuity - elevating its platform in the breathtaking Yallamundi Rooms at the iconic Sydney Opera House. Designed...

2021: Japan IR – Crunch time part 2

Nomura: Strong VIP volumes at Marina Bay Sands bodes well for Genting Singapore’s own hotel upgrade decision

by Ben Blaschke
Thu 24 Jul 2025 at 14:24

The impressively strong performance of its Singapore rival Marina Bay Sands (MBS) bodes well for Genting Singapore and its decision to invest in hotel room enhancements at Resorts World Sentosa (RWS), according to Nomura analysts. It also suggests that RWS...

Your browser does not support the video tag.


IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • English