prompting some analysts to speculate<\/a> dividend payers in the group, including MGM, could eliminate their payouts.<\/p>\n<\/div>\nMGM stock yields 4.31 percent. The company hasn’t commented on its payout, but it did scrap a $1.25 billion buyback plan last month.<\/p>\n
A New Normal?<\/h2>\n
Potentially weighing on consumer discretionary companies, including gaming operators, is that when the coronavirus situation eases, consumer spending tastes may shift. Over the past three weeks, nearly 17 million Americans filed for jobless benefits, indicating that if casinos, movie theaters, and theme parks soon reopen, audiences for those activities could be limited.<\/p>\n
\u201cThe negative outlook also reflects the negative effect on consumer income and wealth stemming from job losses and asset price declines, which will diminish discretionary resources to spend at casinos once this crisis subsides,\u201d said Moody’s. \u201cMGM remains vulnerable to travel disruptions and unfavorable sudden shifts in discretionary consumer spending and the uncertainty regarding the timing of facility re-openings and the pace at which consumer spending at the company’s properties will recover.\u201d<\/p>\n
The research firm acknowledges an upgrade for MGM isn’t likely over the near-term. But it’s possible if the operator can effectively manage debt and fixed costs, among other considerations.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"MGM Resorts International’s (NYSE:MGM) credit rating was confirmed at \u201cBa3\u201d by Moody’s Investors Service. But that confirmation came with a \u201cnegative\u201d outlook, indicating the Mirage operator isn’t yet out of the woods when it comes to a downgrade. With US casinos shuttered by the coronavirus, ratings agencies are issuing lower grades on debt issued by […]<\/p>\n","protected":false},"author":46,"featured_media":132999,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\n
MGM Has a Tenuous Grasp on Already Flimsy Credit Rating<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n