S&P gives B to Intralot notes

S&P said it assigned a B issue rating and 4 recovery rating to the proposed €450 million senior unsecured notes maturing in 2024 to be issued by Intralot Capital Luxembourg SA, subsidiary of Intralot SA (B/stable).

The B issue rating on the existing €250 million senior unsecured notes due in September 2021 and €250 million senior unsecured notes due in May 2021 remains unchanged, but S&P has now assigned them a 4 recovery rating. This reflects Intralot SA and its subsidiaries falling within the scope of S&P’s recovery criteria after the new jurisdiction ranking assessment on Greece was published on Sept. 7.

The 4 recovery rating indicates an expectation of recovery prospects in the range of 30%-50% (rounded estimate: 45%) in the event of a default.

The recovery rating is constrained by the high amount of senior unsecured debt ranking pari passu and relatively weak guarantor coverage, S&P said.

“Our B corporate credit rating on Intralot SA is based on our assessment of the company's weak business risk profile and highly leverage financial risk profile,” S&P said in a news release.

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