Moody’s says breach at MGM is credit negative as disruption lingers

By Raphael Satter

NEW YORK (Reuters) – Rating agency Moody’s has warned that a recent data breach at gaming company MGM Resorts International could negatively impact the company’s credit.

MGM said Monday it had shut down some of its computer systems due to an unspecified cybersecurity issue, and posts on social media have since shown machines down and long lines as disruption hit several of the group’s properties in Las Vegas.

Moody’s said that while casino floors were back in action, the incident “highlights key risks related to (MGM’s) business operations’ heavy reliance on technology and the operational disruption caused when systems need to go offline or are inoperable.”

The cause of the disruption still hasn’t been officially disclosed, although such breaches are typical hallmarks of ransomware incidents in which extortionists encrypt victims’ computers systems and demand ransoms in digital currency.

Messages seeking comment from MGM, the FBI and the U.S. cybersecurity watchdog agency CISA were not immediately returned. MGM Resorts’ website was “currently unavailable,” according to a holding message posted to the group’s homepage.

(Reporting by Raphael Satter; Editing by David Holmes)