Moody’s rates Cirsa B1, notes B2

Moody's Investors Service said it assigned a B1 corporate family rating and B1-PD probability of default rating to LHMC Bidco SLU (Cirsa).

LHMC Bidco will be the new holding company for the Cirsa group following the completion of its acquisition by private equity funds managed by Blackstone.

Concurrently, the agency assigned ratings of B2 (LGD4) to LHMC Finco, Sarl's proposed €1.56 billion senior secured notes split across euros, dollars and euro floating-rate note tranches.

Cirsa Funding Luxembourg SA's B2 instrument ratings for the existing notes (€450 million senior notes due 2021 and €500 million notes due 2023) are unchanged, and the B1 corporate family rating, B1-PD probability of default rating and outlook for Cirsa Gaming Corp., SA were withdrawn.

The outlook for all ratings is stable.

Moody’s said the rating reflects Cirsa's: (a) Leading market position in Spain and Latin America, with an improved risk profile as Argentina will no longer be part of the business; (b) strong operating performance with consistent growth in spite of challenging market conditions (partially due to acquisitions); (c) good diversification by gaming segment and geography; and (d) strong track record in successfully managing a difficult operating environment and the agency’s expectation that the company will continue to mitigate the challenges arising in emerging markets.

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