Geographically diverse portfolio of cash-generative businesses. Leading market positions and barriers to entry in gaming. Limited maintenance capital expenditure requirements. Highly leveraged financial profile (including shareholder payment-in-kind loan). Substantial exposure to Latin America (notably Argentina and Mexico), which we view as having generally higher regulatory and foreign exchange risks. Relatively modest free cash flows after capital expenditures. Material cash balances held in Latin America. The ratings on Spain-headquartered gaming company Codere S.A. reflect our view of its highly leveraged financial risk profile (after consolidating its shareholders' payment-in-kind [PIK] loan) and substantial exposure to Latin America (particularly Argentina and Mexico), which Standard&Poor's Rating Services regards as generally subject to greater regulatory, foreign exchange, and labor relations risks than its
