Fitch Ratings expects Tabcorp Holdings to improve its operating margins and reduce debt over the next two years, citing the Australian wagering group’s established market position, strategy renewal and regulatory changes that have narrowed its cost disadvantage against online competitors.
The ratings agency affirmed Tabcorp’s Long-Term Issuer Default Rating at ‘BBB-‘ and maintained a Stable Outlook. It also affirmed the ‘BBB-‘ rating on senior unsecured notes issued by Tabcorp Finance Pty Limited, a wholly owned subsidiary.
Fitch expects Tabcorp’s credit metrics to remain adequate for its rating over the medium term despite pressure on discretionary spending. However, soft wagering turnover, competition…