Moody’s analysts have upgraded Playtech’s corporate family rating to Ba2, from Ba3, as well as the company’s probability of default rating (to Ba2-PD).
In a Monday note, the ratings group noted that Playtech had ‘continued to post strong trading performance and the company has consistently delivered results above Moody’s forecasts with 2022 revenues above pre-COVID levels’.
The analysts note that going forward, ‘we expect mid-single digit revenue growth, underpinned by an advanced and modular technology platform that supports different needs from gambling operators facing tightening online regulation, scaling its Live Casino investments to benefit from the fastest growing segment of online gambling and expansion into the fast growing markets of North and Latin America through a portfolio of structured agreements’.
Moody’s does caution that Playtech has a ‘high degree of customer concentration in the B2B division of the business, as well as some exposure still to unregulated markets in Asia’.
It also notes the strong competition within the sector, but notes that Playtech is well-positioned within Europe (particularly the UK and Italy) and is rapidly growing in developing markets in the Americas.
