Moody's rates International Game Technology convertible Baa2

Moody's Investors Service said it assigned a Baa2 rating to International Game Technology's $825 million senior convertible notes due 2036 and affirmed all of the company's existing ratings.

The outlook is stable.

The agency said International Game Technology's ratings reflect its leading market share in casino gaming products, high profitability, moderate leverage and ability to generate positive cash flow after working capital, capital expenditures and dividends. The ratings also consider the company's extensive portfolio of trademarks and intellectual property rights that support continued roll-out of new games and systems.

Key rating concerns are the risks associated with maintaining technological leadership, the company's dependence on key development personnel, dependence on the regulated domestic and international gaming markets and the non-investment grade credit profile of many of its customers, Moody's said.

Pro forma debt to EBITDA is about 1.1x.

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