S&P rates Scientific Games loans BBB-

Standard & Poor's said it assigned Scientific Games International Inc.'s proposed $850 million senior secured credit facilities BBB- ratings with a 1 recovery rating.

S&P affirmed parent Scientific Games Corp.'s BB corporate credit rating.

The outlook is stable.

Proceeds will be used to refinance the existing credit facilities.

The rating reflects the highly competitive market conditions in the lottery and pari-mutuel industries, the mature nature and capital intensity of the online lottery industry, and the company's acquisitive growth strategy, the agency said.

The rating is supported by a leadership position in the instant ticket lottery and pari-mutuel gaming industries and consistent credit metrics appropriate for the rating, S&P said.

As of March 31, the issuer's operating lease- and pension-adjusted total debt-to-EBITDA ratio is about 4.2 times.

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