MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services affirmed its ratings on MGM Mirage Inc, including the 'BB' corporate credit ratings with a positive outlook, after the company approved the development of a major resort casino project in Atlantic City, with a construction budget initially estimated to be 4.5-5.0 bln usd.
The ratings were removed from creditwatch positive.
The agency noted that given the size of the casino project and that ground breaking is expected in 2008, leverage is likely to increase over the intermediate term.
If the company is able to demonstrate an ability to maintain leverage at levels supporting a BB+ rating over the next several quarters, rating upside is possible, S&P said.
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