S&P rates MGM China notes BB-

S&P said it assigned a BB- issuer credit rating to MGM China Holdings Ltd.

The agency also said it assigned a BB- rating to MGM China's proposed aggregate $1.25 billion unsecured notes due 2024 and 2026.

S&P also affirmed the existing ratings on MGM Resorts and its other subsidiaries, including the BB- issuer credit ratings.

The outlook is stable.

MGM China, a subsidiary of MGM Resorts International, plans to issue $1.25 billion of unsecured notes to repay a portion of its outstanding secured debt, S&P said.

MGM's leverage is expected to improve to the mid- to high-4x range through 2019 as a result of recently completed acquisitions and ongoing investments in the business, the agency said.

Although the refinancing transaction will increase MGM China's financial flexibility by improving its maturity profile and broadening its capital markets access, it will not materially alter the forecast for credit measures over the next few years given it is primarily a debt-for-debt refinancing, Moody's said.

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