Research Update: Italian Gaming Company Gamenet Group Upgraded To 'B+' On Completed Acquisition Of GoldBet; Outlook Stable

On Oct. 9, 2018, Gamenet Group S.p.A (Gamenet) completed the acquisition of 100% of the share of GoldBet, as previously announced to the market on July 24, 2018. The acquisition will provide Gamenet with a larger scale, greater product diversity, improved profitability, and more solid cash flow generation, combined with the potential for significant cost synergies. We are raising our long-term rating on Gamenet to 'B+' from 'B' and removing the rating from CreditWatch positive. We are also assigning our 'B+' issue rating to the €225 million senior secured notes issued in September 2018. The stable outlook reflects our expectation that Gamenet will continue to demonstrate sound operating performance and will successfully integrate GoldBet, such that synergies will enable the

...+ On Oct. 9, 2018, Gamenet Group S.p.A (Gamenet) completed the acquisition of 100% of the share of GoldBet, as previously announced to the market on July 24, 2018. + The acquisition will provide Gamenet with a larger scale, greater product diversity, improved profitability, and more solid cash flow generation, combined with the potential for significant cost synergies. + We are raising our long-term rating on Gamenet to 'B+' from 'B' and removing the rating from CreditWatch positive. We are also assigning our 'B+' issue rating to the 225 million senior secured notes issued in September 2018. + The stable outlook reflects our expectation that Gamenet will continue to demonstrate sound operating performance and will successfully integrate GoldBet, such that synergies will enable the group to deleverage below 4x in the next 12 months, while maintaining materially positive FOCF....

Research Update