S&P rates MGM notes B

Standard & Poor's said it assigned its issue-level and recovery ratings to MGM Mirage's proposed $845 million of senior secured notes due 2020.

The notes were rated B, two notches higher than the CCC+ corporate credit rating on the company, with a recovery rating of 1, the agency said.

The company plans to use proceeds from the proposed offering to repay a portion of its credit facilities in connection with the recently executed amendment, the agency noted.

At the same time, the agency said it affirmed all of its existing ratings on MGM Mirage, including the CCC+ corporate credit rating. The outlook is developing.

"The CCC+ corporate credit rating reflects MGM's significant debt burden, its expectation for continued declines in cash flow generation in 2010, and the company's tight liquidity position," said credit analyst Ben Bubeck.

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