Fitch Ratings Inc has affirmed MGM Resorts International’s and its subsidiaries’ issuer default ratings at ‘BB-’, with a ‘stable’ outlook.
MGM Resorts is the parent of Macau casino licensee MGM China Holdings Ltd. The parent is also developing with partners the JPY1.51-trillion (US$9.49-billion currently) MGM Osaka, a casino resort in Japan, due to open in late 2030.
MGM Resorts additionally runs casinos in the United States and operates a growing digital business.
Fitch’s ‘BB’ ratings are below investment grade, and indicate an elevated vulnerability to default risk, though “business or financial flexibility exists that supports the servicing of financial commitments,” according to the institution.
Fitch said in a Tuesday memo that it expects MGM Resorts’ leverage position to “remain stable,” noting that the group’s liquidity “is sufficient to fund growth opportunities”.
“Potential higher fuel prices could have a short-term impact on gaming markets and affect the outlook if prices remain higher over an extended period,” the institution stated.
MGM Resorts reported adjusted earnings before interest, taxation, depreciation, amortisation and rent (EBITDAR) of US$2.43 billion in full-year 2025, a 0.6 percent improvement year-on-year.
The Macau unit – which runs the MGM Macau resort (pictured) on Macau peninsula, and MGM Cotai in the city’s Cotai district – achieved adjusted EBITDAR of US$1.20 billion last year, up 10.7 percent from 2024.
In Tuesday’s note, Fitch said MGM Resorts’ ‘BB-’ rating reflected the company’s “mid-5x EBITDAR leverage, conservative financial policy, and robust liquidity position”.
The rating “also considers the company’s scale, strong competitive position and diversification,” the rating agency observed.
But it added: “These positive factors are offset by the company’s active development plan, earnings volatility from high-end play in both Las Vegas and Macau, increasing cost pressure, and asset light strategy, which could affect financial flexibility.”
Fitch also noted that the MGM group “has performed well in the Macau market, despite uncertainty with the China economy and a more promotional environment”.
The institution expects future growth in the Macau market “to be steadier”than hitherto, providing “steady cash flow to the parent in the form of branding fees and distributions”.
A new “long-term branding agreement” between MGM Resorts and its Macau unit came into effect from January 1, 2026.
The new deal doubled the percentage of MGM China’s adjusted consolidated net monthly revenues it must pay as a licensing fee to use the ‘MGM’ brand. The amount went up to 3.5 percent, from 1.75 percent of such revenues, which some brokerages said might impact MGM China’s dividends.
Fitch expects headwinds in Las Vegas, Nevada, in the United States, saying the market there “could be volatile given current economic conditions”.
“Las Vegas visitation and room revenues declined in 2025, which appears to be initially carrying into 2026,” the rating agency noted.
“Reduction in international travel, timing of major sporting events and convention exhibits, and perception of higher costs in the market” are “attributable” as factors in “the market softness,” it added.
