Moody’s cuts Olympic

Moody’s Investors Service said it downgraded Odyssey Europe Holdco Sarl’s corporate family rating to Caa1 from B2 and its probability of default rating to Caa1-PD from B2-PD.

Concurrently, Moody’s also downgraded the senior secured notes due 2023 rating to Caa1 from B2. At the same time, Moody’s changed the outlook to negative from on review. This concludes the review process started on March 27, the agency said.

The downgrade and outlook change reflect Olympic’s aggressive financial policy, Moody’s said.

“This is evidenced by the €23.5 million dividend paid at the peak of the coronavirus sanitary crisis, which followed dividends already paid in January and June 2019 totaling €30 million. Funds to pay for this additional dividend were previously earmarked for the Enova acquisition, which the company decided it would no longer pursue,” the agency said in a press release.

Moody’s said it views positively the re-opening of the company’s operations in all of its markets, including online gaming in Latvia. “This is reinforced by the higher than initially anticipated performance in its main countries of operation with gross gaming revenues at 10-15% below the same period last year,” Moody’s said.

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