Fitch Ratings has reaffirmed MGM Resorts International’s issuer default rating at ‘BB-‘ with a stable outlook as of March 2026. This rating, which remains below investment grade, signifies a relatively high credit risk profile. Despite this, Fitch considers MGM’s business operations and financial flexibility strong enough to manage its debt obligations effectively. This stance is underscored by the agency’s assessment that MGM’s financial leverage and liquidity remain robust, supporting its ongoing growth plans. However, potential increases in fuel prices could negatively affect gaming markets, which might prompt a review of the current outlook.
In 2025, MGM Resorts reported adjusted EBITDAR of $2.43 billion, marking a slight increase of 0.6% from the previous year. A significant portion of these earnings was attributed to MGM China Holdings Ltd. The subsidiary, which operates MGM Macau and MGM Cotai, posted an adjusted EBITDAR of $1.20 billion—a 10.7% rise from 2024. This highlights the importance of the Macau operations as a major contributor to MGM’s overall financial performance.
Fitch’s ‘BB-‘ rating for MGM is supported by its leverage ratio, financial strategy, and liquidity position. The rating agency notes MGM’s extensive operations in various markets, including the United States, a digital gaming segment, and the development of a $9.49 billion integrated resort in Osaka, Japan, scheduled to launch in 2030.
Looking forward, Fitch anticipates more consistent growth from the Macau sector, which is expected to provide steady revenue through branding fees and distributions. This is bolstered by a revised branding agreement between MGM Resorts and MGM China, effective January 1, 2026, which doubles the licensing fee paid to the parent company from 1.75% to 3.5% of adjusted consolidated net monthly revenues. This adjustment, while potentially affecting dividend payouts from MGM China, will depend on how the entity manages its distribution policies.
Fitch also cautioned that several factors could impede any upward movement in MGM’s rating. These include the company’s active development initiatives, earnings volatility due to high-end gaming fluctuations in Las Vegas and Macau, and rising operational costs. An asset-light strategy could further constrain MGM’s operational flexibility. In particular, the Las Vegas market is noted as a concern, with both visitation and hotel revenues experiencing a downtrend in 2025 and this trend appearing to persist into 2026. Contributing factors include reduced international tourism, event scheduling challenges, and perceptions of Las Vegas becoming costlier for tourists.
These issues collectively underpin MGM Resorts’ current credit rating, despite its stable leverage situation and improved performance in Macau. As the company navigates these challenges, the rating agency suggests that changes in the external economic environment, particularly fuel price fluctuations, could necessitate a reassessment of MGM’s credit outlook.
Moving forward, the market will be closely monitoring how MGM Resorts implements its strategic initiatives and manages its development pipeline, particularly in the context of potential headwinds in key markets like Las Vegas and Macau. The opening of the Osaka resort in 2030 will also be an important milestone in MGM’s expansion strategy. Fitch’s future assessments will consider these developments along with broader economic trends that could impact the global gaming landscape.
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