Moody’s drops Amaya to negative

Moody's Investors Service said it affirmed Amaya, Inc.'s and Amaya BV's ratings, including the B2 corporate family rating, and revised the outlook to negative from stable following the March 24 public disclosure that the company's chief executive officer, David Baazov, has been charged with insider trading by Quebec's securities regulator.

Moody’s said the negative outlook considers its perception of increased credit risk for Amaya. The agency believes these civil charges along with the legal process that follows could negatively affect the execution of the company's operations and growth strategies, particularly given that Baazov is significantly involved in the development and execution of Amaya's business strategies.

Additionally, the negative outlook also considers the uncertainty with respect to how the regulators will react to any subsequent disclosure regarding the insider trading charges.

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