Summary: Cirsa Gaming Corp. S.A. Nov 11
- ID: 2028228
- November 2011
- Standard & Poors
The ratings on private Spanish gaming group Cirsa Gaming Corp. S.A. (Cirsa) reflect Standard & Poor's Ratings Services' view of the company's still "aggressive" financial risk profile and "weak" business profile. Our assessment is based mainly on Cirsa's financial policy, which we regard as relatively aggressive, its unhedged open foreign exchange positions, and its fairly modest free cash flows after capital expenditures (capex). Other weaknesses include regulation and labor risks in Latin America--a region which now generates about two-thirds of EBITDA. These risks apply particularly in Argentina, where the company operates two riverboat casinos--the only ones in the city of Buenos Aires--and owns 50% of a casino in Rosario. In addition, we note there is currently more severe cyclical earnings...
Companies mentioned in this report are: Cirsa Gaming Corp. S.A.
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