Moody's snips Voodoo

Moody's Investors Service said it downgraded Stan Holding SAS' long-term corporate family rating to B3 from B2 and its probability of default rating to B3-PD from B2-PD. Concurrently, the agency affirmed the B2 rating on the €220 million senior secured term loan B and the €30 million senior secured revolving credit facility, both due in 2025.

"The downgrade reflects Voodoo's underperformance relative to our expectations, mainly driven by high competition in the hyper-casual segment and the implementation of privacy rules, which have resulted in high marketing and acquisition costs, and in lower overall profitability," said Agustin Alberti, a Moody's vice president-senior analyst and lead analyst for Voodoo, in a press release.

"As a result, the company's credit metrics have deteriorated and are no longer commensurate with the existing B2 rating. While the company is transitioning to a more predictable business model, there is execution risk in this shift," Alberti, added.

The outlook remains stable.

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