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Moody's assigns 1st rating to MGM Resorts' gaming REIT

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Moody's assigns 1st rating to MGM Resorts' gaming REIT

Moody's on April 1 assigned MGM Growth Properties LLC acorporate family rating of (P)B1, with a stable outlook, marking its firstrating for MGM ResortsInternational's REITunit.

The rating agency also assigned a (P)B1 rating for MGMGrowth Properties Operating Partnership LP's senior secured term loan A, seniorsecured term loan B and senior secured revolving credit facility, and a (P)B2 ratingfor its senior unsecured debt rating.

Moody's said in a note that the 's "high quality"portfolio, which is tenanted by MGM Resorts, was considered in its (P)B1corporate family rating.

The rating agency cited the REIT's specialized nature of itsgaming properties, its "high" asset, geographic and tenantconcentrations, and it being under MGM Resorts' effective operational controlas credit concerns.

The stable outlook, meanwhile, takes into account Moody'sexpectations for MGM Growth to sustain its proposed lease terms and capitalstructure and for MGM Resorts to keep its current stake in the REIT, accordingto the rating agency.

The REIT fileda registration statement in March for an IPO of an undisclosed number of its class A shares, withan estimated amount of $100.0 million.