Research Update: Baltic Gaming Group Odyssey Europe Outlook Revised To Negative On Heightened Refinancing Risk; 'B-' Ratings Affirmed

Odyssey Europe Holdco S.à R.L. (Odyssey), parent of Baltic gaming group Olympic Entertainment (Olympic), faces heightened refinancing risk since its €200 million notes are due in December 2025, meaning the group has limited time to address this debt maturity. Odyssey largely performed in line with our expectations. S&P Global Ratings-adjusted leverage improved to 5.0x in 2023 compared to 5.1x pro forma in 2022, supported by continuous growth online and in Croatia, while land-based operations in the Baltics came in below our expectations. In 2024, we forecast leverage will remain stable, free operating cash flow (FOCF) after leases will be marginally positive, and liquidity will be adequate. We therefore revised our outlook to negative from stable and affirmed our 'B-' long-term

...- Odyssey Europe Holdco S.a R.L. (Odyssey), parent of Baltic gaming group Olympic Entertainment (Olympic), faces heightened refinancing risk since its 200 million notes are due in December 2025, meaning the group has limited time to address this debt maturity. - Odyssey largely performed in line with our expectations. S&P Global Ratings-adjusted leverage improved to 5.0x in 2023 compared to 5.1x pro forma in 2022, supported by continuous growth online and in Croatia, while land-based operations in the Baltics came in below our expectations. - In 2024, we forecast leverage will remain stable, free operating cash flow (FOCF) after leases will be marginally positive, and liquidity will be adequate. - We therefore revised our outlook to negative from stable and affirmed our 'B-' long-term ratings on Odyssey Europe Holdco and its 200 million senior secured notes due December 2025. - The negative outlook reflects that we could lower our ratings on Odyssey if the group does not address its upcoming...

Research Update