Moody's rates Scientific Games loans Ba2

Moody's Investors Service said it confirmed Scientific Games Corp.'s Ba3 corporate family rating and Ba3-PD probability of default rating.

At the same time, Moody's assigned Ba2 ratings to Scientific Games International, Inc.'s proposed senior secured credit facilities, consisting of a $300 million five-year revolving credit facility and a $2.3 billion seven-year term loan B.

Moody's downgraded the ratings on Scientific Games Corp.'s and Scientific Games International, Inc.'s existing senior subordinated notes to B2 from B1.

The Ba1 ratings on Scientific Games International, Inc.'s existing bank debt, which will be withdrawn at transaction closing, were confirmed.

The outlook is negative.

Proceeds from the proposed senior secured credit facilities will be used to fund the previously announced acquisition of WMS Industries Inc. for about $1.5 billion and to refinance existing bank debt. The term loan is being pre-syndicated as the acquisition, which is still subject to various gaming regulatory approvals, is expected to close later this year.

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