S&P rates Lottomatica notes BBB-, BB

Standard & Poor's said it assigned Lottomatica Group SpA's proposed senior unsecured notes a BBB- issue-level rating and its subordinated interest-deferrable capital securities a BB rating.

S&P affirmed the company's BBB- corporate credit rating.

The outlook is stable.

Proceeds will be used to refinance the company' credit facilities, which mature in 2012.

The proposed transactions will improve the company's maturity profile, as meaningful debt maturities would be pushed out to 2015, the agency said.

"The BBB- rating reflects Lottomatica's position as one of the world's largest lottery operators, its well-established relationships with lottery authorities worldwide, the high barriers to entry for competitors and a relatively predictable cash flow base," S&P analyst Melissa Long said.

"The maturity and capital intensity inherent in the worldwide online lottery business, intense pricing pressure (particularly in the U.S. lottery industry) and significant financial risk temper these positive rating factors."

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