Posted on: March 17, 2026, 06:38h.
Last updated on: March 17, 2026, 06:38h.
- The ratings agency continues to rate the casino giant non-investment grade
- Fitch applies a “stable” outlook to MGM rating
- Fitch says headwinds remain in Las Vegas
MGM Resorts International’s (NYSE: MGM) credit rating was affirmed at BB- with a “stable” outlook today by Fitch Ratings.
That grade puts the casino behemoth three levels into non-investment grade territory — a status it holds across the three major ratings agencies. Fitch points out MGM’s earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) leverage skews toward the high side for comparably rated companies, but the operator’s earnings before interest, taxes, depreciation, amortization (EBITDA) rating is in-line with those of BBB-rated companies. That’s an investment-grade mark. However, Las Vegas visitation remains an issue for MGM.
Las Vegas visitation and room revenues declined in 2025, which appears to be initially carrying into 2026. Reduction in international travel, timing of major sporting events and convention exhibits, and perception of higher costs in the market has been attributable to the market softness,” notes Fitch.
The research firm points out the operator’s higher-end venues are performing better than its “value-oriented” Las Vega casino hotels. Excalibur and Luxor are in the latter category and those venues account for just 6% of MGM’s overall EBITDA.
MGM Has Strong Liquidity
MGM has a policy of maintaining liquidity of at least $3 billion, which it allows to finance growth projects as well as shareholder rewards including buybacks. Fitch says that is “sufficient” liquidity to drive growth, but notes the operator doesn’t have a lot of levers to pull raise cash in an extraordinary distressed scenario.
That’s not to say such a situation is imminent. It’s not, but MGM long divested its wholly owned assets, turning real estate into cash and long-term lease obligations.
“The move to asset-light allowed the company to materially reduce debt but reduces its flexibility to mortgage securities during distressed situations if funds are needed. MGM’s run-rate triple-net leases (including non-cash lease expense) are expected to annualize to roughly $2.3 billion in 2026,” adds Fitch.
MGM owns half of BetMGM, but it’d likely take an incredibly dire scenario for the gaming company to part with what’s an increasingly lucrative digital wagering stake.
Flat-ish Outlook for MGM
Las Vegas Sands (NYSE: LVS) is the only major US-based casino operator with an investment-grade credit rating, though at Fitch, MGM and Wynn Resorts (NASDAQ: WYNN). That’s an indication MGM’s grade isn’t unusual nor overly poor for the industry.
Looking out to the remainder of 2026, Fitch sees MGM spending $750 million to $1 billion on share repurchases and $1 billion to $1.1 billion, including $200 million in Macau, on capital expenditures. The ratings agency say revenue growth will be lethargic with Macau and BetMGM likely to be bright spots.
“Total revenues are expected to be flat in 2026. Slight declines in Las Vegas and regional markets will be offset by growth in Macau and Digital gaming,” concludes Fitch. “Expect improvements in Las Vegas and regional markets to lead to low single digit growth over the forecast horizon.”
