S&P rates GVC loans BB

S&P said it assigned a BB- long-term issuer credit rating to GVC Holdings plc and placed the rating on CreditWatch with positive implications.

The agency also said it assigned a BB rating and 3 recovery rating to the company's existing senior secured €300 million term loan B and proposed £1.4 billion equivalent term loan B2 facilities.

The 3 recovery rating indicates 50% to 70% expected default recovery.

GVC has launched the syndication of its £1.4 billion equivalent term loan B2 facilities, arranged to fund the acquisition of Ladbrokes Coral Group, S&P said.

The BB- rating reflects GVC's credit risk on a stand-alone basis before the Ladbrokes Coral Group acquisition, the agency explained.

GVC's business risk is viewed as constrained by its exposure to markets with regulatory uncertainties toward online gambling and lack of license exclusivity, S&P said.

Despite GVC's operational expertise, proprietary platforms and loyal customer base, the agency said it believes that barriers to entry in the highly competitive online gaming industry are lower than in land-based gaming.

These constraints are to somewhat offset by GVC's leading market position with notable scale, especially in its expanding sports betting market, S&P said.

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