S&P changes Intralot view

S&P said it revised its outlook on Intralot SA to negative from stable and affirmed the B long-term issuer credit rating.

At the same time, the agency affirmed the B issue rating on the senior unsecured notes issued by Intralot Capital Luxembourg SA. The recovery rating is unchanged at 4, reflecting an expectation of average recovery (30%-50%, rounded estimate: 45%) in the event of payment default.

S&P said the revision reflects that it could downgrade Intralot in the next 18 months if its leverage remains above 7 times and EBITDA interest cover below 2 times.

“This could be the case if we observed an increase in debt to finance capital expenditure (capex) needs or if Intralot failed to increase EBITDA without paying down debt,” the agency said in a news release.

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