Argentina and Italy's latest tax hikes have delayed Codere's growth strategies, leading to a single-digit revenue growth rate and fairly flat profitability in the last 12 months. Nonetheless, we anticipate Codere will stick to its current conservative financial policy of a reported leverage target at 2.5x, while investing the generated cash back into the business. We are therefore affirming our 'B' corporate credit and issue ratings on Codere and its senior secured debt, which it issued after its financial restructuring in November 2016. The stable outlook reflects our view that Codere will report flat profitability in 2017 and will continue its strategic plan of organic growth. This should offset any negative effects of potential regulatory changes. We expect Codere to
