S&P revises PENN outlook to negative

S&P said it revised its outlook for PENN Entertainment Inc., formerly Penn National Gaming Inc., to negative from stable and affirmed the B+ issuer rating.

“Heightened interactive losses from the launch of ESPN BET will increase PENN's forecast leverage above our 6.5x downgrade threshold this year. In the fourth quarter of 2023, PENN reported an interactive EBITDA loss of about $334 million, well above the previous midpoint of its guidance for $125 million in losses, stemming from its launch of ESPN BET in November 2023. These higher-than-anticipated losses were largely due to more new users than expected signing up on the platform,” S&P said in a press release.

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