S&P lifts GVC Holdings

S&P said it raised its long-term issuer credit rating on GVC Holdings plc to BB from BB- and removed the rating from CreditWatch, where it was placed with positive implications on March 5.

The outlook is positive.

At the same time, the agency affirmed the BB issue-level rating on the company's existing senior secured €300 million term loan B and £1.4 billion equivalent term loan B2 facilities. The 3 recovery rating indicates an expectation of meaningful recovery (50%-70%; rounded estimate: 65%) in the event of a payment default.

S&P said the rating reflects a view that the acquisition of Ladbrokes Coral Group strengthens GVC's business profile and positions it as the largest gaming company in Europe, with revenues of about €3.7 billion.

“We consider that the merged entity benefits from a more diversified product mix and broader geographical diversification, which will enhance its capacity to weather some of the potential effects of future regulatory events,” the agency said in a news release.

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