Fitch cuts Ladbrokes outlook to negative

Fitch Ratings said it has changed Ladbrokes plc's outlook to negative from stable.

The ratings have been affirmed at long-term issuer default BB+ and short-term issuer default rating B, the agency noted.

"Today's rating action follows Fitch's revised financial forecasts in the wake of Ladbrokes' interim results and assessment of the remedies management may deploy to protect the company's cash flow generation and balance sheet, should trading continue to be difficult," said Giulio Lombardi, senior director in Fitch's European retail, leisure and consumer products group.

"Fitch has concluded that these measures could be insufficient to return Ladbrokes' leverage to levels compatible with the current BB+ by FYE10."

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