S&P rates 888 loan B+

Standard & Poor’s said it assigned a preliminary B+ long-term corporate credit rating to 888 Holdings plc.

The agency also said it assigned a preliminary B+ rating to 888’s proposed $600 million equivalent senior secured term loan B due 2021, which is issued by 888’s financing subsidiary 888 Financing LLC.

The outlook is stable.

888 plans to acquire bwin.party digital entertainment plc, S&P said.

The ratings reflect an expectation that the company’s post-transaction business risk profile will be weak and its financial risk profile will be considered significant, the agency said.

The ratings also consider the negative comparable rating analysis modifier, which reflects a range of likely potential near-term business risks, S&P said.

The agency also noted that 888 has some exposure to currency-exchange risks. The company reports in U.S. dollars while receiving the bulk of its revenues in British pounds sterling and euros, S&P said.

But, the company has historically managed some of this risk through its hedging policy, the agency said.

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