S&P rates MGM B-, loans B+

Standard & Poor's said it assigned Metro-Goldwyn-Mayer Inc. a B- corporate credit rating and its $500 million senior secured exit facility, consisting of a $175 million revolving credit facility due 2015 and a $325 million term loan due 2016, a B+ issue-level rating with a 1 recovery rating, indicating the expectation of very high (90% to 100%) recovery in the event of a payment default.

The outlook is stable.

The company used the proceeds of the loans to fund bankruptcy costs, related fees and expenses, working capital and other general corporate purposes.

The ratings reflect the absence of new releases that support licensing of the company's extensive feature film library, the expectation that discretionary cash flow and EBITDA will remain negative for several years and the steep reduction in the company's debt burden upon its emergence from bankruptcy, S&P said.

The ratings also consider the company's vulnerable business risk profile, its poor box-office performance over the past several years and a secular decline in the value of film libraries, the agency said.

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