Moody's reviews VICI for upgrade

Moody's Investors Service said it placed on review for upgrade all the ratings of VICI Properties LP and its subsidiary, VICI Properties 1 LLC following the announcement of the proposed merger with MGM Growth Properties Operating Partnership LP where VICI will be the surviving entity.

“The review for upgrade reflects Moody's view that VICI's planned acquisition of MGP will result in a combined entity with significant size and scale. The acquisition will also improve the portfolio's quality with reduced tenant concentration and a vastly unencumbered portfolio of properties. The rating action also considers VICI's good corporate governance including its bench strength with the same management and board members who will lead the combined company,” the agency said in a press release.

The review will consider the REITs' ability to receive approvals from shareholders and regulators and also focus on their leverage positions, VICI's execution plans relating to the potential elimination of its secured debt and the permanent financing upon the merger’s close, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.