Moody’s Investors Service has announced it has placed the Ba2 corporate family rating and senior unsecured debt ratings of Ladbrokes and Ladbrokes Group Finance on review for possible downgrade.
In a prepared statement Moody’s said the rating action reflects the legacy risk that arises from the company's material contingent liabilities from guarantees given to third parties over the lease liabilities of subsidiaries in the disposed hotel division.
However, Moody's said that there is a counter-guarantee given by Hilton Hotels Corporation for any payments made by Ladbrokes under these guarantees.