S&P gives GVC revolver BB

S&P said it assigned a BB rating with a 3 recovery rating to GVC Holdings plc’s new £535 million revolving credit facility.

The agency also revised GVC’s outlook to stable from positive, citing upcoming regulatory changes in Germany and the United Kingdom as well as the investigation relating to the processing of payments by a third-party supplier to one of GVC’s previously controlled subsidiaries.

The outlook also considers the view the group's capital allocation policy will result in gradual deleveraging, with S&P Global Ratings-adjusted leverage of 4x in 2020 and about 3.5x in 2021 while FFO to debt remains about 20% over the next 12 months, the agency said.

S&P affirmed GVC’s BB ratings.

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