Fitch: CityCenter deal ‘good first step’

Fitch Ratings weighed in yesterday on MGM Mirage’s deal a week ago to save the massive $8.5 billion CityCenter development.

Addressing CityCenter’s financing overhang was the casino operator’s first step in repairing the company’s balance sheet, which has $13.5 billion in long term debt.

Now, MGM Mirage will focus on various restructuring alternatives that may include debt exchanges, raising additional debt/equity capital, and/or sales of one or several of the company’s casinos.

Fitch told investors the company’s debt ranking reflects its belief that MGM Mirage will likely do a coercive debt exchange, "which would be considered a restricted default."

Fitch said such an exchange could help MGM Mirage avoid bankruptcy.