Moody's raises Affinity Interactive

Moody's Investors Service said it upgraded Affinity Interactive's corporate family rating to B2 from B3, it's probability of default rating to B2-PD from B3-PD, and the rating on its 6 7/8% senior secured first-lien notes to B2 from B3. Affinity was formed through the merger of Affinity Gaming and Herbst Gaming Inc.

"The upgrade considers that Affinity has reduced its leverage to below the level required for an upgrade. Debt to EBITDA for the latest 12-months ended March 31, 2022 was 5x, which is below the 6x upgrade factor, and substantially below where Moody's projected it would be at this time last year, between 6x and 7x," stated Keith Foley, a Moody's senior vice president, in a press release.

"Moody's believes the lower leverage is sustainable given the expected continuation of the company's good operating performance and limited capital spending needs, which benefits the company's free cash flow and financial flexibility," Foley added

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.