MGM Still Reeling From Cyber Attack, Moody's Says It Could Hurt Credit Ratings

By
Bill McColl
Bill McColl
Full Bio

Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

Learn about our editorial policies
Published September 13, 2023
MGM Grand Hotel & Casino

Ethan Miller / Staff / Getty Images

Key Takeaways

  • MGM reported a cyberattack to regulators, suggesting the hack will have a material effect on the company.
  • Moody's said the breach could negatively effect the hotel and casino operator's credit rating.
  • A ransomware group reportedly was behind the attack, which is still disrupting company systems.

Shares of MGM Resorts International (MGM) fell after the hotel and casino operator informed the Securities and Exchange Commission (SEC) about a cybersecurity attack, suggesting it will have a material effect on the company.

Moody’s also warned the issue could impact MGM’s credit rating, saying the attack “highlights key risks” to its operations, because they have a heavy reliance on technology.

The hack has disrupted the company’s systems since Sunday. Its corporate email, hotel booking, and restaurant reservation services remain offline.

MGM indicated it is investigating, and is being assisted by external cybersecurity experts and law enforcement. The FBI acknowledged it is looking into the matter.

MGM Resort International shares have declined for three straight sessions, and they have dropped to their lowest level since early June. 

MGM
YCharts.
Do you have a news tip for Investopedia reporters? Please email us at
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. MGM Resorts International. "FORM 8-K."

  2. CNBC. "MGM Resorts says cyberattack could have material effect on company."

Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.