Moody's assigns B2 to Ontario Gaming

Moody's Investors Service said it assigned first-time ratings to Ontario Gaming GTA LP (One Toronto Gaming or OTG), consisting of a B2 corporate family rating, a B2-PD probability of default rating, and a B2 rating on its $800 million first-lien term loan B due 2030 and its $200 million revolving credit facility expiring 2028. The outlook is stable.

"OTG's credit profile reflects a favorable regulatory framework that reduces competitive forces as well as the recent completion of its Toronto casino property," said Jason Mercer, a Moody’s vice president, in a press release.

Moody’s noted that OTG benefits from being the sole casino operator in Canada’s largest metropolitan area, but as its only location that constrains the rating, too. Another constraint is OTG’s modest leverage with Moody's adjusted debt to EBITDA staying above 5x to the end of fiscal 2024 but declining below 5x in fiscal 2025 and with interest coverage remaining above 2x.

OTG will use the loans, together with $400 million of senior secured notes, to refinance C$1.5 billion in secured debt with the remainder used for general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.