S&P cuts AP Gaming

S&P said it downgraded all its AP Gaming Holdings LLC ratings to B from B+. The ratings remain on CreditWatch with negative implications.

“The downgrade reflects heightened liquidity risk in light of the temporary closure of casinos to prevent the spread of Covid-19. Gaming machine manufacturers, such as AP Gaming will generate negative EBITDA and burn cash for as long as casinos are closed because it will not be earning revenue from gaming machines on casino floors,” said S&P in a press release.

S&P said it would consider AP Gaming’s cash burn rate while the casinos are closed and any added steps to curtail expenses.

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