S&P upgrades AP Gaming

S&P said it raised its issuer credit rating on AP Gaming Holdings LLC to B+ from B.

The outlook is stable.

The agency also raised the issue-level rating on AP Gaming's senior secured debt to B+ from B.

“The upgrade reflects our expectation for adjusted leverage to remain around 4.5x or below through 2019, providing sufficient cushion relative to our 5x adjusted debt-to-EBITDA threshold for AP Gaming at the B+ rating level to absorb the impact of potential modest operating underperformance, small tuck-in acquisitions, or modestly higher growth-related capital spending,” S&P said in a news release.

“Further, we believe maintaining adjusted leverage in the mid-4x area or below is aligned with the company's financial policy, especially since we no longer expect that funds managed by Apollo – which has reduced its ownership in AP Gaming's parent, PlayAGS, to 34.6% from about 68% – will have a material influence on AP Gaming's financial policy.”

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