S&P lowers Rank Group outlook to negative

Standard & Poor's said it revised its outlook on The Rank Group plc to negative from stable.

At the same time, the BB- long-term and B short-term corporate credit ratings were affirmed, the agency said, adding that the outlook revision follows indications that key leverage ratios for 2007 will exceed the target levels previously set, not helped by recent changes in U.K. gaming taxation and earnings pressures arising from the extension of the smoking ban in Scotland to Wales and England.

According to S&P, the U.K. casino gaming duty regime is being restructured, with the replacement of the lowest tax bands on casino yields by a 15% tax rate and an increase in the highest rate of casino gaming duty to 50% from 40%.

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