S&P rates Flutter notes BBB-

S&P said it rated Flutter Entertainment plc’s planned €500 million and $500 million of senior secured notes, which will rank equally with its outstanding $3.9 billion term loan B due 2030, BBB-. The recovery rating on the notes is 2 (75% expected recovery). Concurrently the agency revised the outlook to positive from stable.

The ratings match those on the outstanding term loan.

Flutter will use the proceeds to refinance its outstanding €507 million term loan due 2026 and repay drawings under its revolving credit facility, with any surplus to remain as cash on the balance sheet.

“The positive outlook indicates that we could raise the rating if Flutter continues to demonstrate sound operating performance spurred by the significant growth expectation in its U.S. business, with credit metrics strengthening toward 3x S&P Global Ratings-adjusted leverage and robust free operating cash flow (FOCF) generation, while maintaining a consistent financial policy supportive of the stronger performance and credit ratios,” S&P said in a press release.

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