The rating on Spain-based gaming company Codere S.A. reflects Standard&Poor's Ratings Services' view of its "highly leveraged" financial risk profile and "weak" business risk profile. Codere's rating is mainly constrained by its financial risk profile, and, in particular its liquidity, which we view as "less than adequate." Our liquidity concerns focus mainly on Codere's ability to refinance its €120 million senior revolving credit facility (RCF) maturing in June 2013 over the next quarter, as well as the importance of access to cash flows located in Latin America, particularly in Argentina. We think these cash flows have some vulnerability to foreign exchange movements, which we understand are only partially hedged in 2012, and not hedged at all in 2013.
