Fitch ups VICI Properties from junk, rates notes BBB-

Fitch Ratings said it upgraded the issuer default ratings of VICI Properties Inc. and subsidiary VICI Properties LP (collectively, VICI) to BBB- from BB.

Fitch also upgraded VICI's existing senior unsecured debt to BBB- from BB/RR4 and assigned BBB- ratings to VICI's announced issuance of senior unsecured notes.

The outlook is stable.

“The upgrade reflects Fitch's increased confidence that the pending acquisition of MGM Growth Properties (MGP) will close following completion of all closing conditions and VICI's launch today of unsecured notes to fund the balance of the acquisition,” Fitch said in a news release.

“The acquisition is contractually required to close within 33 days of completion of all closing conditions.

The combined company's strengthened credit profile and 5.0x-5.5x net leverage target is consistent with a BBB- IDR, the agency said.

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