Moody’s drops Lucky Bucks

Moody's Investors Service said it downgraded Lucky Bucks, LLC's corporate family rating to Caa1 from B2.

The company's probability of default rating was downgraded to Caa1-PD from B2-PD and its revolver and term loan ratings were downgraded to Caa1 from B2.

At the same time, all of Lucky Bucks' ratings were placed on review for further downgrade.

“The downgrade considers several factors, including the unfavorable impact on EBITDA from the increase in regulatory enforcement in the Georgia coin-operated amusement machine market, along with Moody's heightened concern regarding inflation and recession, particularly the potential impact on consumer discretionary spending,” the agency said in a news release.

“Combined, these factors will challenge the company to achieve and maintain Moody's debt-to-EBITDA downgrade trigger of 5.0x during the next 12-18 months.”

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