Fitch rates Loarre Investments notes BB

Fitch Ratings said it assigned Loarre Investments Sarl's €850 million of senior secured notes an expected BB rating.

“The rating reflects Loarre's stable revenue under its silent partnership agreement (SPSA) with LaLiga, the second-most followed football league in the world, but is weighed down by loose debt structure features and the high leverage,” Fitch said in a press release.

“Three of the major clubs in Spanish football and the Spanish Royal Football Federation are in dispute with Loarre's investment in LaLiga, which they have challenged in the courts. Despite this, we see multiple layers of protection as well as economic incentives that should insulate debt investors from the risk of these legal challenges if the key transaction documents were to be nullified,” the agency added.

The outlook is stable.

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