S&P turns Affinity Gaming view to positive

S&P said it revised Affinity Gaming’s outlook to positive from stable and affirmed all its ratings on the firm, including the B- senior secured rating.

“Good EBITDA growth in 2021 drove a significant reduction in adjusted leverage, which provides capacity to absorb a potential EBITDA decline and maintain leverage under our 6.5x upgrade threshold. Affinity's adjusted leverage improved to the mid-to-high-5x area as of Sept. 30, 2021, compared to about 11x at the end of 2020, which was negatively affected by temporary property closures and subsequent operating restrictions because of the pandemic,” S&P said in a press release.

Though Affinity’s EBITDA may retreat 10%-20% in 2022 from what the agency’s sees as a high-water mark in 2021, S&P said Affinity could maintain adjusted leverage below 6.5x, a level it considers aligned with a one-notch higher rating for Affinity.

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