S&P rates Sazka bond BB-

Standard & Poor's said it assigned its BB- long-term rating to Czech Republic-based Sazka as' €175 million senior secured bond maturing 2014 and a BB- corporate credit rating to Sazka.

The outlook is stable.

"The ratings reflect Sazka's aggressive financial leverage, after the company has funded the construction of Sazka Arena - an 18,000-seat sports and entertainment complex in Prague," said S&P credit analyst Anna Overton. "The ratings are supported, however, by the sustainable, cash-generative nature of Sazka's well-established lottery business in the Czech Republic, where it is the market leader with a share of more than 80% of the lottery market."

In the absence of an operating track record from the arena, S&P said the rating assumptions do not rely on the arena's operating cash flows being available to service the €175 million amortizing bond.

Sazka is expected to continue to benefit from its stable and mature lottery business and remain committed to reducing its financial leverage progressively through the amortizing bond structure, according to S&P.

© 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.