Moody's rates Lottomatica, Gtech notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to the Lottomatica Spa and Gtech Corp.'s new €750 million senior unsecured guaranteed notes due 2016. Its other ratings are affirmed.

The rating outlook is stable.

The proceeds will be used to refinance existing debt at both Lottomatica and Gtech, Moody's said.

The bond issuance improves the company's maturity profile by refinancing near term maturities, the agency said.

The rating reflects the company's solid market position in the global lottery gaming market, leading position in the Italian gaming industry, solid profitability and good growth prospects internationally, Moody's said.

Key credit risks include leverage, which will rise in the near term due to debt incurred to finance growth and contract renewals, the agency said.

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