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Fitch rates Bally loan BBB-
Fitch Ratings said it assigned a BBB- rating to Bally Technologies, Inc.'s new $700 million five-year senior secured credit facility, consisting of a $300 million term loan and a $400 million revolver, and affirmed Bally's issuer default rating at BBB-.
The outlook was revised to negative from stable.
The outlook revision reflects reduced financial flexibility following the $400 million tender offer to repurchase stock, the continued soft operating environment and concern as to the company's financial policies with respect to its ongoing share repurchase program, the agency said.
The affirmation considers enough free cash flow generation in fiscal 2012 and fiscal 2013 to support the required term-loan amortization, a healthy level of share repurchase and leverage reduction over that time frame, the agency said.
The ratings consider the good likelihood of a leveraged recapitalization or leveraging acquisition as well as risks inherent in the gaming supplier industry, the agency added.
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