S&P lifts Aristocrat Leisure view to positive

S&P said it revised the outlook on Aristocrat Leisure Ltd. to positive from stable.

The agency also said it affirmed the BB corporate credit rating and issue-level ratings on Aristocrat and its related debt.

The recovery rating on the company’s loan is 3H, indicating 60% to 70% expected default recovery.

The positive outlook reflects a view of Aristocrat’s improved operating performance as a result of the company’s strengthening market position, higher margin product mix and successful integration of Video Gaming Technologies, Inc. in October 2014, S&P said.

The company’s strong cash flow generation should allow it to sustain adjusted debt-to-EBITDA at less than 2.5x, the agency explained.

But S&P said it does not view Aristocrat’s current financial policies as necessarily supporting these credit metrics over the medium- to long-term.

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