MGM China has transitioned into a more mature operational phase, marked by rising market share and a strengthened competitive position in Macau, according to a new report from Fitch Ratings.
The agency affirmed the Issuer Default Ratings (IDRs) of MGM Resorts International and its subsidiaries at ‘BB-’ with a stable outlook, noting that the Macau unit has become a reliable source of cash flow for its US parent.
Despite economic uncertainty in China and a highly promotional gaming environment, MGM China outperformed market expectations in 2025, recording an 11 percent increase in EBITDA. Fitch expects growth to moderate following the rapid post-pandemic recovery, but said the business will continue to generate consistent cash flow through branding fees and distributions.
A key driver of this stability is a new long-term branding agreement effective January 1st, 2026. Replacing the existing contract that expires at the end of 2025, the new 20-year deal doubled the monthly license fee from 1.75 percent to 3.5 percent of MGM China’s adjusted consolidated net revenue. MGM Resorts is expected to receive approximately 66.6 percent of these fees, which are subject to annual caps based on business volume.
‘Fitch anticipates future growth to be steadier while still providing stable cash flow to the parent in the form of branding fees and distributions,’ the agency said. The agreement also includes an automatic extension mechanism that could run through 2045, contingent on MGM China securing a new gaming concession after 2032.
While the group faces some headwinds in Las Vegas due to declining visitation and rising costs, its Macau operations provide important geographic diversification. Fitch expects MGM China’s performance to help offset softer trends in the US market through 2026, supported by an annual capital expenditure commitment of $200 million in Macau to meet concession requirements.
