Moody’s rates Optimal Payments, loans Ba2

Moody's Investors Service said it assigned a provisional Ba2 corporate family rating to Optimal Payments plc.

Concurrently, the agency assigned a provisional Ba2 rating to the company's €500 million term loan and $85 million revolving credit facility to be issued by Netinvest Ltd.

The outlook is stable.

The ratings are subject to a successful closing of Optimal Payments' acquisition of the Skrill Group Ltd.

Moody’s said the provisional Ba2 rating reflects: (a) Optimal Payments’ significant exposure to the gambling industry; (b) a degree of client concentration with the company's top customer representing around 32% of revenues as of FY2014 (company expects proportion to decline to 15-20% by year-end 2015); (c) exposure to changes in regulatory framework in the company's end markets and/or regulation by authorities overseeing their industry; and (d) the fragmented characteristics of the payment-processing industry where competitive solutions may yet emerge.

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