Australia-based lottery operator and Keno licensee, The Lottery Corp. Ltd.'s (TLC), high-quality cash flows, strong competitive position in the heavily regulated Australian market, along with its exclusive and/or long-dated state and territory licenses underpin its credit quality. TLC's competitive position benefits from high barriers to entry, earnings stability, and low capital intensity. As a result, the business can support elevated financial leverage. On April 19, 2022, S&P Global Ratings assigned its 'BBB+' preliminary long-term issuer credit rating to TLC. Under this rating, we expect debt to EBITDA to remain comfortably below 4.0x. The outlook on TLC is stable, reflecting our expectation that the company's high quality cash flow and long-dated state and territory licenses, creating substantial market barriers, will continue
