Fitch corrects Great Canadian notes

Fitch Ratings identified an error in its recovery analysis of Great Canadian Gaming Corp., (Raptor Acquisition Corp.) that incorrectly led the senior unsecured notes to be rated B/RR5. Correcting the error led to a one notch downgrade for the unsecured notes rating to B-/RR6. GCGC's BB+/RR1 revolver and term loan ratings are unchanged. GCGC's issuer default rating remains B+.

“The downgrade of the unsecured notes by one notch reflects the correction of an error in which Fitch utilized an enterprise value (EV) multiple in its prior recovery analysis that exceeded the permissible range for non-U.S. based assets specified in Fitch's corporates recovery ratings and instrument ratings criteria. Under the revised analysis, which utilizes a 7x EV multiple, the reduced recovery prospects for the unsecured notes result in a recovery rating of 6 (RR6),” Fitch said in a press release.

The outlook is stable.

© 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.