S&P cuts Playtech

S&P said it downgraded the ratings for Playtech and its two bond issues to BB- from BB, citing the temporary closure of its stores in Italy and the cancellation of global sporting events. The recovery rating of 3 is unchanged (rounded estimate 65).

“We forecast S&P Global Ratings-adjusted leverage of above 4x in 2020 (equivalent to about 3.2x, excluding our capitalized development cost [CDC] adjustment). However, Playtech will continue to generate modest free operating cash flow (FOCF), maintain adequate liquidity and comply with its financial covenant through 2020,” S&P said in a press release.

The outlook is negative.

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