Moody’s downgrades Intralot

Moody's Investors Service said it downgraded Intralot SA's corporate family rating to B2 from B1 and probability of default rating to B2-PD from B1-PD.

The agency downgraded to B2 from B1 the instrument ratings on the €250 million senior notes due 2021 and €500 million senior notes due 2024, both issued by Intralot Capital Luxembourg SA.

The outlook is negative.

Moody’s said the downgrade reflects the continued high leverage which has remained above the agency’s downgrade trigger of 4x for the past year, as well as an expectation that leverage will increase towards 5x by the end of 2018 due to a decrease in EBITDA driven mainly by unfavorable currency movements particularly the Turkish lira.

The agency said it expects that there will be no deleveraging before 2020 unless significant disposal proceeds are used to repay debt.

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