Fitch lowers 888

Fitch Ratings said it downgraded 888 Holdings plc's long-term issuer default rating to B+ from BB- and the senior secured debt ratings of 888 Acquisitions Ltd. and 888 Acquisitions LLC to BB- from BB+. Their Recovery Ratings have been revised to RR3 from RR2.

“The downgrade follows our forecast revision of slower deleveraging due to weaker revenue growth and more muted profitability improvement than our earlier expectations, which also results in EBITDAR fixed charge coverage (FCC) falling below its previous negative sensitivity (under 1.8x) until at least 2025,” the agency said in a press release.

Fitch said it also expects that 888’s net EBITDAR leverage topped 6x in 2023, and stay there in 2024 and 2025 before dropping below 5.5x in 2026.

The outlook is stable.

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