from SNL Real Estate Daily
Moody's affirms MGM Growth Properties ratings
Byline: SHAHZAIB RAJA
Moody's assigned and withdrew a Ba3 corporate family rating and an SGL-2 speculative-grade liquidity to MGM Growth Ppty OP, the operating unit of casino real estate investment trust MGM Growth Properties LLC.
The ratings outlook for the operating unit was revised to negative from stable.
The casino REIT was assigned a Ba3 corporate family rating, with outlook changed to negative from stable and withdrawn.
The operating unit's corporate family rating reflects its highly predictable cash flow sustained by its long-term triple net master lease agreement with MGM Resorts International.
The rating agency said the unit is vulnerable to shifts in market sentiment in these unprecedented operating conditions owing to weakness in its credit profile.
The negative outlook reflects pressure on operating cash flows that is expected to persist as tenants face coronavirus-induced business disruption.