Las Vegas Sun

March 28, 2024

S&P issues negative outlook for CityCenter

An Inside Look at Veer Towers

Sam Morris / Las Vegas Sun

The sweeping forms of Aria are visible from a two-bedroom apartment at Veer Towers at CityCenter.

Standard & Poor's Ratings Services issues a negative outlook on CityCenter, and says the casino complex will have trouble generating enough cash flow to justify its current capital structure.

The rating agency on Monday gave the casino complex owned by MGM Resorts International and Dubai World a "B-" corporate credit rating.

The agency says a recent offering of $1.5 billion in new notes only modestly offsets CityCenter's risks.

CityCenter issued $900 million in notes due 2016 and $600 million in notes due 2017, using the proceeds to pay down its existing debt and extend its due dates.

Standards & Poor's gave the notes due 2016 a "B" issue-level rating and the notes due 2017 a "CCC" rating.

The agency says holders of the notes due in 2017 can expect negligible recovery.

Join the Discussion:

Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.

Full comments policy