S&P rates Gamenet notes B, view stable

S&P said it revised the outlook on Gamenet to stable from negative and affirmed its issuer credit rating at B.

The agency also said it assigned a B rating and 3 recovery rating to the proposed €200 million senior secured notes due in 2021.

The recovery rating indicates 50% to 70% expected default recovery.

S&P also said it affirmed the B rating and 3 recovery ratings on the existing €200 million senior secured notes.

The agency also said it assigned an issuer credit rating of B to the vehicle issuing the proposed notes, Gamenet Group SpA.

The outlook revision reflects an opinion that Gamenet has managed to stabilize operating performance and will have an improved liquidity profile once it completes the refinancing transaction it announced July 15, S&P explained.

The outlook revision also considers a view that the regulatory framework is more favorable this year as Italy's 2016 stability law repealed the €500 million tax on the industry that was put in place last year, the agency said.

The company launched the opportunistic refinancing of the €200 million senior secured notes due 2018 by announcing that it will issue €200 million of senior secured notes maturing in 2021 and add a €30 million revolver aimed at supporting its liquidity position, S&P said.

This is a favorable development for Gamenet, as the bullet maturity will get pushed out by an additional three years and liquidity will be boosted by the revolver, the agency said.

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