MGM/UA Communications’ $400 million of single-B rated...

MGM/UA Communications’ $400 million of single-B rated bonds was placed on Standard & Poor’s CreditWatch with developing implications, meaning that the rating may be raised or lowered. S&P; said it took the action because Kirk Kerkorian, who owns 82% of the movie firm’s stock, said he is considering selling one of its two film production units and distributing the proceeds to stockholders. S&P; said the rating on the debt could be lowered if a “significant” amount of proceeds from an asset sale was paid out in a dividend. However, it could be raised if most of MGM/UA’s assets were sold to someone of stronger credit than MGM/UA.