Moody’s Investors Service on Wednesday downgraded Greek gaming IT and sports betting manager Intralot S.A.’s corporate family rating to B3 from B2 and probability of default rating (PDR) to B3-PD from B2-PD.
In a statement, Moody’s said the “… downgrade of Intralot’s CFR to B3 was primarily prompted by continued liquidity concerns, reflecting the continuing negative free cash-flow which Moody’s expects to persist for at least the next 12 months as well as increasing concerns about the company’s ability to access its revolving credit facilities (RCFs) due to the high likelihood that the financial maintenance covenants attached to these facilities will be breached.”
At the same time a negative outlook was given, saying it reflects “… expectation that free cash flow will remain negative until at least the first half of 2020, in conjunction with the absence of available access to external sources of cash. There is considerable uncertainty related to the timing of intended disposals and the use of the potential sale proceeds for debt reductions and/or to improve liquidity, which could hinder any positive movements in its credit metrics.”
