MGM looking for cash at Hong Kong IPO

MGM Resorts is among several casino operators that may face refinancing problems without cash infusions or a rise in gaming revenues in the near future, Moody’s Investors Service analysts Keith Foley and Peggy Holloway said in a recent report, quoted by Reuters. The company is expected to generate cash with an IPO of its joint venture in Macau later this year and the sale of its interest in the Borgata casino in Atlantic City. However, if the economy weakens and its cash raising does not go as well as expected, "their financial profile is still very weak," Michael Paladino, an analyst at Fitch Ratings, told Reuters. At March 31, 2010, the company had approximately US$13.0 billion of debt (with a carrying value of US$12.7 billion).