Moody's lifts Entain

Moody's Investors Service said it upgraded Entain plc's corporate family rating to Ba1 from Ba2, the probability of default rating to Ba1-PD from Ba2-PD and to Ba1 from Ba2 the rating on the £590 million senior secured revolving credit facility due 2026. Moody's also raised to Ba1 from Ba2 the senior secured term loan B3 and B4 due in 2024 and 2027 issued by Entain's subsidiary Entain Holdings (Gibraltar) Ltd.

"Entain's business model has demonstrated resilience during the Covid-19 pandemic, with growth on its on-line offer somewhat offsetting the drop in revenues from the retail betting shops. Entain's sharp rebound in 2021 with the retail re-opening and solid cash flow generation has led to credit metrics that positions it well in the Ba1 rating category," said Stefano Cavalleri, a Moody’s vice president, senior analyst and lead analyst for Entain, in a press release.

The agency said it expects Entain will sustain leverage as measured by debt to EBITDA below 3x in 2022 and that it will trend towards 2.5x in 2023.

The outlook remains stable.

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