NEW YORK (TheStreet) -- Shares of MGM Resorts International (MGM) - Get Report are down by 3.01% to $20.97 in late morning trading on Monday, as stocks of casinos operating in China's Macau gambling district take a hit on renewed concerns relating to revenue out of the gaming hub.

Gaming revenue will keep declining through the middle of 2015 and dividends will be cut as the price of new capacity eats away at free cash flow, resulting in share valuations becoming too expensive, analyst Jamie Zhou of the Hong Kong-based firm Macquarie Securities told Bloomberg.

"Macau is in a tough spot. We believe dividends will be slashed across the board," Zhou said.

Macau reported a 49% drop in gaming revenue last month, due to the anti-corruption policies started by the Chinese government, which have been keeping high stakes players away from the casinos.

Other Macau casino stocks slipping today include Las Vegas Sands (LVS) - Get Report, down by 3.07% to $53.40, Wynn Resorts (WYNN) - Get Report, lower by 3.72% to $131.91, and Melco Crown Entertainment (MPEL) , down by 4.55% to $22.01 this morning.

Separately, TheStreet Ratings team rates MGM RESORTS INTERNATIONAL as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate MGM RESORTS INTERNATIONAL (MGM) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and a generally disappointing performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• 36.85% is the gross profit margin for MGM RESORTS INTERNATIONAL which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -14.34% is in-line with the industry average.
• MGM RESORTS INTERNATIONAL has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MGM RESORTS INTERNATIONAL continued to lose money by earning -$0.32 versus -$0.35 in the prior year. This year, the market expects an improvement in earnings ($0.49 versus -$0.32).
• Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.6%. Since the same quarter one year prior, revenues slightly dropped by 5.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
• The debt-to-equity ratio is very high at 3.46 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, MGM maintains a poor quick ratio of 0.81, which illustrates the inability to avoid short-term cash problems.
• The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 502.5% when compared to the same quarter one year ago, falling from -$56.81 million to -$342.26 million.
• You can view the full analysis from the report here: MGM Ratings Report