Fitch ups Gala Group notes, Gala Coral view stable

Fitch Ratings said it revised Gala Coral Group Ltd.’s outlook to stable from negative and affirmed the long-term issuer default rating at B.

The agency also upgraded subsidiary, Gala Group Finance plc's senior secured notes to BB from BB- and their recovery rating to RR1/96% from RR2.

Gala Electric Casinos plc's senior notes were affirmed at CCC+ with a Recovery Rating of RR6/0%.

Fitch said the outlook revision reflects the improved rating headroom following a good operating profile in financial year to September 2014 (FY14), primarily driven by improved online and bingo operating profits despite the highly competitive market, and the growing Italian business, which the agency believes will be sustainable.

It also reflects the view that the group's business strategy is taking effect.

Fitch expects the combination of positive free cash flow in 2015 and repayment of propco debt to provide additional financial flexibility in FY15 and beyond.

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