Negative Rating Actions Taken On Three European Gaming Operators As COVID-19 Pandemic Continues

The COVID-19 pandemic has led to the temporary global closure of gaming stores operated by Cirsa Enterprises, Sazka, and OPAP. While the magnitude and duration of the pandemic is uncertain, our current base case assumes that the virus will peak around mid-2020. By our estimates, these gaming operators do not face any imminent liquidity risk over the next 12 months, but a prolonged shutdown could strain their credit quality. We are therefore lowering our issuer credit rating on Cirsa Enterprises, Sazka Group, and OPAP by one notch. We are assigning a negative outlook to the ratings on all three. We will review the companies' creditworthiness once we can more clearly assess the effect of the pandemic on their financial metrics

...April 16, 2020 - The COVID-19 pandemic has led to the temporary global closure of gaming stores operated by Cirsa Enterprises, Sazka, and OPAP. - While the magnitude and duration of the pandemic is uncertain, our current base case assumes that the virus will peak around mid-2020. - By our estimates, these gaming operators do not face any imminent liquidity risk over the next 12 months, but a prolonged shutdown could strain their credit quality. - We are therefore lowering our issuer credit rating on Cirsa Enterprises, Sazka Group, and OPAP by one notch. We are assigning a negative outlook to the ratings on all three. - We will review the companies' creditworthiness once we can more clearly assess the effect of the pandemic on their financial metrics and liquidity. PARIS (S&P Global Ratings) April 16, 2020--S&P Global Ratings said today that it has taken the following rating actions on three European gaming operators: - We lowered our long-term issuer credit rating on Cirsa Enterprises S.L.U....

Ratings Action