Fitch: P4 Sp view to stable

Fitch Ratings said it revised the outlook on P4 Sp zoo’s to stable from positive.

The long-term issuer default rating and national long term rating were affirmed at B+ and BBB-(pol), respectively, Fitch said.

Play Finance 2 SA’s senior secured notes were affirmed at BB- with a recovery rating of RR3 and Play Finance 1 SA’s senior notes were affirmed at B- with a recovery rating of RR6.

The change in the outlook reflects increased financial risk associated with P4’s capital structure following the company’s announced plan to issue subordinated payment-in-kind notes at the Play Topco level, the proceeds of which will be used to pay shareholder dividends, the agency said.

The PIK issue confirms that management is likely to manage the group’s capital structure and financial policies in a shareholder-friendly manner, which is less likely to lead to the de-leveraging previously expected by the agency, Fitch said.

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