On June 11, 2007, Standard&Poor's Ratings Services placed its 'BB-' corporate credit ratings on Spanish gaming company Codere S.A. on CreditWatch with negative implications. At the same time, the 'B' senior unsecured debt rating on related guaranteed entity Codere Finance (Luxembourg) S.A. was also placed on CreditWatch Negative. The CreditWatch placement follows the announcement that the company's 58.5% majority shareholder Masampe Holding B.V. is to put in place a new €340 million payment-in-kind (PIK) financing, to replace the current PIK loan, which will be repaid for €158.4 million, including a 2% premium. Standard&Poor's consolidates the debt of Masampe Holding with that of Codere when calculating the group's credit ratios. The CreditWatch placement reflects the increase in
