Moody's eyes Lottomatica for upgrade

Moody's Investors Service said it placed Lottomatica SpA's ratings on review for upgrade, including the B1 corporate family rating, B1-PD probability of default rating and the B1 instrument ratings on the €340 million of senior secured notes, the €300 million of senior secured floating rate notes, the €575 million of senior secured notes all due 2025 and the €350 million of senior secured notes due 2027.

Concurrently, the agency put the B3 instrument rating on the €400 million of backed senior secured PIK toggle notes due 2026 issued by Gamma Bondco Sarl on review for upgrade. Moody's also changed the outlook for both entities to ratings under review from stable.

“The rating action is driven by the announcement from Lottomatica Group SpA, the holding company for Lottomatica, of its intention to float (ITF) on April 13, 2023. The group is planning an initial public offering (IPO) on the Italian stock market, and will use the majority of the proceeds to repay the 2026-backed senior secured PIK toggle notes and partially repay the 2025 senior secured notes,” the agency said in a press release.

The review will focus on the results and final effect of the IPO on the company's capital structure. “The conclusion of the review for upgrade will rest upon the successful conclusion of the IPO and will likely result in an upgrade of all ratings by a notch,” Moody’s said.

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