Fitch slashes Voodoo

Fitch Ratings said it downgraded Stan Holding SAS' (Voodoo) long-term issuer default rating to B from BB. The agency also dropped the senior secured instrument ratings of Voodoo's €220 million term loan to B+/RR3 from BB+/RR2.

“The downgrade reflects a material shift in Voodoo's business profile, with structurally weaker profitability, owing to an interrupted ad-based business model with higher customer acquisition costs, but also higher required investments with longer pay-back periods in the hybrid and casual game genre. Leverage and cash flow metrics are now more adequately positioned at B,” Fitch said in a press release.

The outlook is stable.

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