Research Update: Cirsa Outlook Revised To Positive On Solid Operating Performance; Affirmed At 'B-'; Proposed Notes Rated 'B-'

We anticipate Spain-based gaming company Cirsa Enterprises S.L.U.'s 2022-2023 operating performance will strengthen thanks to solid results in the first half of 2022. The group proposes to issue €350 million of senior secured notes to partly refinance upcoming maturities of about €560 million notes due in December 2023. Consequently, we revised the outlook on Cirsa to positive from stable, and affirmed our 'B-' ratings on the company and its senior secured debt. We also affirmed at 'CCC' the issue rating on the €468 million payment-in-kind (PIK) notes outstanding, issued by LHMC Finco 2. The recovery ratings are unchanged at '3' and '6', respectively. At the same time, we assigned our 'B-' issue rating, with a '3' recovery rating, to Cirsa's

...- We anticipate Spain-based gaming company Cirsa Enterprises S.L.U.'s 2022-2023 operating performance will strengthen thanks to solid results in the first half of 2022. - The group proposes to issue 350 million of senior secured notes to partly refinance upcoming maturities of about 560 million notes due in December 2023. - Consequently, we revised the outlook on Cirsa to positive from stable, and affirmed our 'B-' ratings on the company and its senior secured debt. We also affirmed at '###' the issue rating on the 468 million payment-in-kind (PIK) notes outstanding, issued by LHMC Finco 2. The recovery ratings are unchanged at '3' and '6', respectively. - At the same time, we assigned our 'B-' issue rating, with a '3' recovery rating, to Cirsa's proposed 350 million senior secured notes. - The positive outlook indicates the possibility of an upgrade over the next 12 months if Cirsa successfully refinances upcoming maturities due December 2023 such that they are comfortably covered by the...

Research Update