S&P cuts Bally’s

S&P said it downgraded Bally’s Corp.’s (formerly Twin River Worldwide Holdings Inc.) issuer rating to B from B+ but left the senior secured debt rating unchanged at BB- and placed it on CreditWatch with negative implications.

Bally’s plans to acquire Tropicana Evansville’s operations from Caesars Entertainment Inc. It also plans to Dover Downs Hotel & Casino’s real estate assets to Gaming & Leisure Properties Inc. (GLPI). Bally’s will then enter into a long-term lease with GLPI. for Dover Downs and Tropicana Evansville. Bally’s also reported the planned acquisition of Bet.Works.

“The downgrade reflects our expectation for lease-adjusted leverage to be above our 5.5x revised downgrade threshold in 2021. We expect lease-adjusted leverage to increase to the high-5x area in 2021, following the announcement of a number of transactions which we consider leveraging, including the acquisition of the gaming operations of Tropicana Evansville for $140 million, the sale of the real estate assets of Dover Downs, and the acquisition of Bet.Works for $125 million,” S&P said in a press release.

The outlook is stable.

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