Moody's downgrades Intralot

Moody's Investors Service said it downgraded Intralot SA's corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD.

Moody's also said it downgraded the instrument ratings on the €250 million senior notes due 2021 and €500 million senior notes due 2024 issued by Intralot Capital Luxemburg SA to B3 from B2.

The outlook is negative.

The downgrades were primarily prompted by continued liquidity concerns, reflecting the continuing negative free cash flow that Moody's said expects to persist for at least the next 12 months.

The agency also said the downgrades consider increasing concerns about the company's ability to access its revolving credit facilities due to the high likelihood that the financial maintenance covenants attached to these facilities will be breached.

The ratings are also constrained by potential de-leveraging based on asset disposals and substantial cash leakage through dividend outflows, Moody's said.

The ratings also recognize the company's leading market position as a global supplier of integrated gaming systems and services and its diversified contract portfolio, the agency said.

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