S&P trims Amaya ratings

S&P said it lowered its long-term corporate credit rating on Amaya Inc. to B+ from BB-. The outlook is stable.

At the same time, S&P lowered its issue-level ratings on the company's first-lien senior secured debt to BB- from BB; the recovery rating on the debt is unchanged at 2, indicating substantial (70-90%; lower half of the range) recovery in a default scenario.

S&P also lowered its issue-level rating on the company's second-lien debt to B from B+; the 5 recovery rating on the debt is unchanged, indicating modest (10%-30%; lower half of the range) recovery in default.

“The downgrade reflects our expectation that, although revenue is growing, it has not done so as quickly as expected, so the company's deleveraging has been slower than anticipated, resulting in credit metrics below our rating threshold of 5x debt-to-EBITDA,” said S&P credit analyst Andrew Ng in a news release.

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