In our view, recent Argentine government policies and actions could hinder the operations of Spain-based gaming company Codere S.A. in Argentina. Codere relies heavily on its earnings from Argentina, which represent about 55% of group consolidated EBITDA. We are lowering our long-term rating on Codere to 'B-' from 'B' and assigning a negative outlook. The negative outlook mainly reflects our view that any significant macroeconomic and political deterioration in Argentina over the next 12 to 24 months could adversely affect Codere's earnings and liquidity during the period. On July 6, 2012, Standard&Poor's Ratings Services lowered its long-term corporate credit rating on Spain-based gaming company Codere S.A. (Codere) to 'B-' from 'B'. The outlook is negative. At the same
