Fitch downgrades Intralot

Fitch Ratings said it downgraded Intralot SA's long-term issuer default rating to B from B+.

The outlook is negative.

The downgrade reflects an expectation of weaker profits for 2018 and high capital expenditure resulting in a permanently higher leverage than previously expected, Fitch said.

Operational performance is impacted by foreign-exchange volatility and increased competitive pressure in some markets, the agency said.

The latter, together with possibly lower- or longer-than-planned return on capital expenditure could delay and limit the extent of de-leveraging, Fitch said.

This would increase refinancing risk and put pressure on the company's liquidity cushion over the next 12- to 18-months, which explains the negative outlook, the agency said.

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