Fitch assigns 888 BB-, notes, loans BB+

Fitch Ratings said it assigned 888 Holdings plc a first-time expected long-term issuer default rating of BB-. The agency also assigned 888 Acquisitions LLC's and 888 Acquisitions Ltd.'s planned debt issue expected senior secured ratings of BB+ with RR2 recovery ratings. The outlook is negative.

“The BB-(EXP) IDR reflects a strong combined business profile of 888 and WHI with a widely recognized online and retail brand portfolio plus a high potential for synergies that are balanced against a weak combined financial profile,” Fitch said in a press release.

The debt proceeds will be used to fund 888's acquisition of William Hill International (the non-U.S. operations of William Hill).

“The negative outlook reflects uncertainty from regulatory updates, exposure to the U.K. economy, and a lack of leverage headroom. Fitch expects 888 to be able to deleverage through organic business growth despite current downside risks, supported by the group's financial policy with a net debt-to-EBITDA target of 3x,” the agency said.

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