...- U.S.-based gaming equipment provider AP Gaming Holdings LLC is recovering more slowly than its peers because of weakness in its international installed base, which continues to face significant pressure due to the COVID-19 pandemic. In addition, we expect equipment sales to remain weak through the first half of 2021 as casino operators preserve cash to manage uncertainty surrounding their recovery. As a result, we expect AP Gaming's gross leverage will remain high in 2021. - Notwithstanding our expectation for gross leverage to be above our 6.5x downgrade threshold in 2021, we believe the company's EBITDA recovery this year and next year and its likely use of some of its excess cash to prepay at least a portion of its high-cost incremental term loan when it becomes callable in May 2022 should support leverage improving below 6.5x in 2022. - Therefore, we affirmed all ratings on AP Gaming, including our 'B' issuer credit rating on the company, and removed the ratings from CreditWatch,...
