S&P subirá el ráting de Cirsa por la fusión con Lottomatica

S&P has increased the rating of Cirsa following the merger with Lottomatica. The agency maintains the BB- debt rating of the gaming group and anticipates an upgrade upon closing the operation. S&P expects the credit rating of the gaming and entertainment company Cirsa to improve after the agreement to merge with Italian company Lottomatica, announced on the previous day.

The Spanish company will be absorbed by Lottomatica through an exchange of shares. Currently, Cirsa's debt rating from S&P is BB- with a stable outlook. The agency issued a positive credit surveillance yesterday as a result of the integration of the two companies. According to the agency, this decision reflects the likelihood of an upgrade in Cirsa's ratings to match those of Lottomatica once the transaction is completed.

Lottomatica has a BB rating. The operation will double Cirsa's current scale, generating combined revenues of €5.6 billion and an adjusted EBITDA of €1.8 billion by the end of 2027, taking into account the agency's forecasts on synergies and non-recurring costs, the report published on Tuesday added. S&P also expects the merger to accelerate the growth of Cirsa's online gaming business, which accounts for around 13% of the company's EBITDA, thanks to the exploitation of Lottomatica's existing technological capabilities and its expertise in developing its own online gaming business.