S&P's Scientific Games ratings unaffected

Standard & Poor's said its credit rating and outlook on Scientific Games Corp. (BB/stable) are not affected by the company's announcement that is has signed a nonbinding letter of intent to acquire The Global Draw Ltd. and certain related entities for an upfront purchase price of about $183 million and an earn-out, which will be paid depending on the future financial performance of the business.

Scientific Games will use availability under its existing revolving credit facility and new debt financing to fund the transaction, which is expected to close within the first quarter of 2006.

S&P said the acquisition provides Scientific Games entry into the U.K. betting and gaming market and an opportunity to develop the video lottery terminal business in Europe. The acquisition, combined with the company's existing leading presence in the instant ticket lottery segment and growing presence in the worldwide online lottery segment, provides Scientific Games a platform for additional growth.

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