Moody’s Investors Service has upgraded its outlook on Scientific Games from negative to stable following signs of recovery and the reopening of more casinos.
Moody’s said: “The outlook change also reflects the company’s good cost discipline and more resilient lottery business. These factors, along with a pullback in capex, enabled the company to generate over US$280m of positive free cash flow in 2020 and Moody’s projects a similar free cash flow level can be achieved in 2021 despite an increase in capex. The rating reflects the meaningful revenue and earnings decline from efforts to contain the coronavirus and the potential for an uneven recovery as its gaming customers’ properties have reopened. Scientific Games owns a large portfolio of complementary gaming products and services, both digital and non-digital, that it can utilize and cross-sell globally among its various distribution platforms.”