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S&P lowers International Game
Standard & Poor’s said it lowered the corporate credit rating on International Game Technology to BBB- from BBB.
The agency also said it lowered all of the issue-level ratings by one notch.
All of the ratings remain on CreditWatch with negative implications.
The downgrade and CreditWatch listing follows news that the company entered into a definitive merger agreement with GTECH SpA, whereby GTECH will acquire International Game for $6.4 billion, including $4.7 billion in cash and stock, S&P said.
The CreditWatch listing also reflects an expectation that the new combined company’s leverage will likely increase to the low- to mid-4x range and could remain at more than 4x at the end of 2015, which would be somewhat weak for a BBB- rating on the combined company.
This level of leverage is aligned with a weaker aggressive financial risk profile, the agency said.
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