S&P flips Flutter view to positive

S&P said it revised Flutter Entertainment plc’s outlook to positive from stable and affirmed the BB+ issuer rating and BBB- ratings on its senior secured debt.

“The outlook revision follows Flutter's settlement of the Kentucky case and progress toward the company's target of reported group leverage at 1x-2x in the medium term,” S&P said in a press release.

Flutter agreed to pay $200 million, in addition to a $100 million superseded bond that was already paid, to settle a long-running lawsuit with the Commonwealth of Kentucky. As part of the settlement, Flutter withdrew its petition to the U.S. Supreme Court for a judicial review of the case, the agency noted.

“The positive outlook indicates the possibility of an upgrade if Flutter's operating performance and free operating cash flow (FOCF) remain robust and leverage steadily reduced, resulting in the S&P Global Ratings-adjusted debt-to-EBITDA ratio staying sustainably below 3x in line with management's financial policy targets, assuming a manageable impact of U.K. regulatory changes and a gradual decline of consolidated losses in the U.S. through 2023,” S&P said.

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