Moody's affirms MGM Mirage

Moody's Investors Service said it affirmed MGM Mirage's existing ratings, including its Ba2 corporate family rating and speculative grade liquidity rating of SGL-3.

The outlook is negative.

The affirmation follows an announcement from MGM's 56% shareholder, Tracinda Corp., that it would not pursue negotiations with MGM involving the purchase of the Bellagio Hotel and Casino and CityCenter properties. However, Tracinda also stated it will continue to evaluate opportunities to enhance shareholder value in the company.

Moody's said the risk of a potential leveraged deal has been diminished but remains high enough to warrant a negative outlook. The negative outlook also considers higher spending this year and the company's involvement in a number of large-scale projects.

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