S&P rates Lottomatica notes BBB-

Standard & Poor's said it assigned a BBB- rating to Lottomatica SpA's proposed senior unsecured notes.

The corporate credit rating is BBB-.

The outlook is stable.

Proceeds will be used to refinance some debt.

"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.

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

As of Sept. 30, total debt-to-EBITDA ratio, adjusted for operating leases, was 3.6x.

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