Fitch gives Ontario Gaming B+

Fitch Ratings said it assigned a first-time long-term B+ issuer default rating to Ontario Gaming GTA LP (OTG). The agency also assigned BB+/RR1 ratings to OTG's planned $200 million revolver due January 2025, $800 million term loan due July 2030 and $400 million of senior secured notes due January 2030.

The outlook is positive.

“The ratings consider OTG's pro forma EBITDAR leverage of 5.4x for the total 12 months ending March 2023, reducing to under 4x by FY25E, healthy discretionary FCF generation, and a long-term agreement with the provincial regulator in Canada's largest market, the greater Toronto area (GTA). The company has invested approximately C$1.3 billion in property improvements, which should drive EBITDA growth over the near term. The long-term leverage profile remains uncertain given the potential for material dividend repatriation to sponsors over the rating horizon,” Fitch said in a press release.

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