Moody's drops Sazka

Moody's Investors Service said it has downgraded the long-term national-scale corporate family rating of Sazka, as to Ba1.cz from Baa3.cz.

The outlook is negative.

The agency said the rating action concludes the review for possible downgrade first initiated on Dec. 19.

The agency said the downgrade reflects Moody's concerns about (i) Sazka's continuing exposure to the potential volatility of the hedging structure that it has in place to manage its balance sheet exposure derived from a substantial part of its euro-denominated long-term liabilities and (ii) the possibility of a significant effect on the company's liquidity in the event of its premature termination or in the situation of unfavorable value of Czech koruna against euro.

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