Fitch downgrades Intralot to CC

Fitch Ratings said it downgraded Intralot SA’s long term issuer default rating to CC from CCC, and the senior unsecured rating on the bonds issued by Intralot Capital Luxembourg SA and guaranteed by Intralot’s key subsidiaries, to C/RR5 from CCC/RR4.

“The downgrade of the IDR reflects increasing risk of a debt restructuring as well as refinancing risk for Intralot’s €250 million bond maturing in September 2021. Intralot is currently discussing with its bondholders to modify its capital structure. Fitch views that these negotiations may result in some form of debt restructuring, which would qualify as a default or restricted default under our criteria,” Fitch said in a press release.

The lowering of the senior unsecured ratings considers legal challenges in Bulgaria that would result, in Fitch’s view, in a further reduction of Intralot’s scale, leading to lower recovery prospects (RR5) for bond investors, the agency said.

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