MGM Resorts announced on Wednesday that a cyber incident that has caused extensive disturbances throughout the US for the last three days poses a substantial endangerment to the company. Additionally, major credit rating institution Moody's flagged that the cyberattack may have a detrimental effect on MGM's credit rating, noting that it pointed to "critical hazards" within the corporation. An outcome of the attack, the firm's corporate email, restaurant reservation and hotel booking systems, as well as digital room keys, remain offline.
MGM Resorts declared Wednesday that the cyber incident that has interrupted operations across the United States for the past three days now constitutes a potential material risk to the company. Concurrently, Moody's warned that the cyberattack could detrimentally influence MGM's credit rating, citing the episode as an indication of "key risks" within the firm. MGM's email, restaurant reservation, hotel booking systems, and digital room keys remain out of order in the wake of the attack, and the company filed a 8-K report with the SEC noting they had disclosed the incident with a press release on Tuesday. MGM has since reinforced that they take the incident seriously. Their stock prices have decreased greater than 6% since Monday, when they first mentioned the outages, while the S&P 500 has had a barely discernible growth in that timespan. The FBI told CNBC that they are still looking into the situation, and the new SEC cyber disclosure regulations will not take effect until the end of the year, so MGM has not been held to any additional disclosure requirements. On social media, patrons have voiced their disappointments about the length and range of the outage, with some even reporting inability to access their key cards. One of the main concerns revolves around the security of personal data: In 2020, MGM revealed they had lost personal information from over 10 million customers in a hack and the data was thereafter found on a hacking forum. Currently, MGM is conversing with outlets through publicly available, noncorporate email accounts and has provided a brief update regarding the resuming of gaming floor operations. The SEC has yet to respond to CNBC's request for comment. (Contributed by CNBC's Dan Mangan).
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