S&P cuts Rank

Standard & Poor's said it lowered the long-term corporate credit rating on the Rank Group plc to B+ from BB- and its three public bond issues to B from BB-.

The outlook is negative.

According to S&P, the downgrade reflects its expectation given Rank's recent profits warning, that key credit metrics will deteriorate in the second half. The agency said recent disappointing sales figures suggest that adjusted leverage is likely to exceed 5 times at year-end and that key cash flow adequacy measures will also deteriorate.

The ratings reflect the company's well-known gaming brands and second-ranked position in the U.K. bingo and casino businesses, S&P said.

The ratings also reflect a highly leveraged capital structure, relatively front-loaded bond maturities, disproportionate exposure of bingo to smoking bans and its exposure to regulatory shocks, the agency said.

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