Moody’s cuts International Game

Moody’s Investors Service said it downgraded International Game Technology plc’s corporate family rating to Ba3 from Ba2 and probability of default rating to Ba3-PD from Ba2-PD. The company’s notes were downgraded to Ba3 from Ba2. The company’s speculative grade liquidity rating remains SGL-3. The outlook is negative.

The downgrade is in response to the disruption in casino visitation, gaming machine use, and lottery operations resulting from efforts to contain the coronavirus including recommendations from federal, state and local governments to avoid gatherings and avoid non-essential travel, the agency said.

“This includes the coronavirus outbreak in Italy, which is under strict lockdown measures with only essential businesses open and travel restrictions. Italy accounts for more than 30% of IGT’s revenue,” said Moody’s in a press release.

These efforts additionally include mandates to close retail locations and casinos, IGT’s large customers temporarily, Moody’s said.

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