Fitch upgrades Intralot

Fitch Ratings said it upgraded Intralot SA's long-term issuer default rating to CCC+ from CCC and affirmed the senior unsecured rating on the 2024 notes issued by Intralot Capital Luxembourg SA at CCC and revised the recovery rating to RR5 from RR4.

“The upgrade of the IDR reflects our revised parent-subsidiary linkage (PSL) assessment, which considers the refinancing of Intralot's U.S. operations' debt with new bank financing (maturing in 2025). The terms of this new debt improve Intralot's access to its subsidiary's cash flows and are favorable for the cost of debt at the consolidated level,” the agency said in a press release.

Fitch said its revised PSL assessment also considers the increase in ownership of Intralot Inc. to 100%, fully equity-funded via placement of common shares.

“Retaining access to Intralot Inc.'s cash flows remains critical for Intralot to support adequate debt service ratios and its current rating,” the agency said.

Fitch said it estimates Intralot will be able to maintain adjusted gross debt/EBITDAR at around 6x-6.5x in 2022-2024.

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