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Specific to MGM, the Cosmopolitan operator is likely to be able to hold leverage in the high 6x range through the end of this year and that\u2019s well below the area at which ratings agencies are likely to downgrade B+-rated bonds. A recently announced partnership with Marriott International could also benefit MGM\u2019s domestic top and bottom lines, potentially aiding its quest to pare leverage and shore up its credit picture.<\/p>\n<\/div>\n
\u201cBased on data from the Cosmopolitan in Las Vegas, a city where MGM sells 12 million room nights annually, MGM should be able to replace near 5-7% of its lowest yielding rooms with Marriott direct bookings. This could increase profit per room by near $100 per night and drive $60-75 million in annual profit once ramped,\u201d concluded Noland.<\/p>\n","protected":false},"excerpt":{"rendered":"
Corporate bonds issued by MGM Resorts International (NYSE: MGM) carry junk ratings, but the casino giant has the ability to service that debt. The Bellagio operator recently reported impressive second-quarter results and noted that BetMGM was profitable in that period with the potential to remain that way over the remainder of 2023. The largest operator […]<\/p>\n","protected":false},"author":46,"featured_media":257949,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,33810,81886],"tags":[81903,81898,23],"acf":[],"yoast_head":"\n
MGM Credit Picture Sound, But Bonds Offer Limited Upside<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n