The ratings on gaming group Codere S.A. reflect its highly leveraged financial profile; significant exposure to volatile Latin American economies; high yet partially hedged, exchange-rate risks; lack of direct ownership of licenses in certain jurisdictions; and heavy indebtedness of controlling shareholders. These concerns are partially mitigated by the stable and cash-generative nature of Codere's Spanish slot (amusement with prizes; AWP) machine business, where it is the second-largest operator; its strong record of EBITDA growth in the Province of Buenos Aires, Spain, and Mexico; limited maintenance capital expenditure requirements; and adequate liquidity. Codere completed an IPO on Oct. 19, 2007, raising net proceeds of €129.1 million, which were mainly used to fund the purchase of 49% of Mexico-based Impulsora de Centros
