...- Gambling company Playtech PLC announced on Nov. 1, 2023, that all fees due to the group from Caliplay, the subsidiary of Mexican casino operator Caliente, are being paid into a Mexican court-mandated trust account rather than directly to the group. The development follows ongoing legal disputes between Playtech and Caliente that originally emanated from the validity of a call option, which allows the redemption of an additional services fee paid by Caliplay to Playtech under its structured agreement. - In our view, the latest development of events increases the risk that Playtech may use up its headroom, given that cash flows from Caliplay contribute significantly to Playtech's earnings and free cash flows. If prolonged, this could deteriorate the group's overall business and financial strength, as well as its liquidity. - We therefore placed our '##' long-term issuer and issue credit ratings on Playtech and its debt on CreditWatch with negative implications. - The negative CreditWatch...
