S&P revises Novomatic to negative

S&P said it revised the outlook on Novomatic AG to negative from stable.

At the same time, the agency affirmed the BBB long-term and A-2 short-term corporate credit ratings on Novomatic and the BBB senior unsecured ratings on its outstanding notes.

“The outlook revision reflects our view of the uncertainties relating to a stronger impact from regulatory changes than we currently expect in Germany, Novomatic's largest core market, where it generates about 29% of its revenues,” S&P said in a news release.

“A stricter application of the new regulation by local municipalities than we currently expect could result in weaker revenues and a weaker EBITDA margin than we project in our base case. This could lead us to revise down our assessment of the group's business risk profile.”

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