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 and limited maintenance capital expenditure requirements. Codere recorded revenues of €945.2 million and lease-adjusted EBITDA of €237.6 million in the 12 months ended March 31, 2008. The group's adjusted-debt-to-EBITDA ratio at March 31, 2008, (including the nominal
