S&P assigns Scientific Games loan BB

Standard & Poor's said it assigned its BB bank loan rating and its 2 recovery rating to Scientific Games Corp.'s proposed $200 million senior secured term loan E due Dec. 23, 2009.

Proceeds from the proposed term loan will be used to refinance amounts outstanding under the company's existing revolving credit facility, the agency said.

All other ratings on Scientific Games were affirmed, including its BB corporate credit rating, S&P noted.

The outlook is stable.

The ratings on Scientific Games reflect the highly competitive market conditions in the lottery and pari-mutuel industries, the mature nature and capital intensity of the online lottery industry, the cash flow concentration from the company's lottery segment and the existence of a much larger and well-established competitor in the online lottery segment, GTECH Holdings Corp., S&P noted.

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