Fitch rates MGM Resorts notes CCC

Fitch Ratings said it assigned a rating of CCC with a recovery rating of RR4 to MGM Resorts International's proposed $500 million senior notes due 2016.

The outlook is positive.

The proceeds will be used to repay some of the $1.2 billion non-extended portion of the company's credit facility, which has an Oct. 3, 2011 maturity date, the agency said.

The outlook is supported by the additional liquidity provided by the proposed $500 million senior issuance, Fitch said.

The outlook also considers MGM's stronger near-to-medium term liquidity profile due primarily to the recent issuances of equity and senior unsecured notes, Fitch said.

The significant refinancing and capital raising efforts by MGM over the last 18 months have better positioned the company to survive its liquidity crunch and create a more sustainable capital structure, the agency said.

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