Moody's announced this Wednesday an improvement in the credit rating of Codere Group Topco, S.A., raising its 'rating' from 'Caa3' to 'Caa1' with a "positive" outlook, while also raising the probability of default rating (PDR) from 'Caa3-PD' to 'Caa1-PD'.
In its latest report, the rating agency details that it has also revised upwards the ratings of the senior secured bonds for an amount of 128 million euros, maturing in 2028 and issued by Codere Finance 2 (Luxembourg) S.A., which rise from 'Caa3' to 'Caa1' and retain a "positive" outlook.
Moody's attributes these improvements to the operational performance recorded in 2025, a year in which the adjusted gross operating result (Ebitda) calculated by the agency itself increased from 104 million euros to 129 million euros.
Likewise, the analysis firm anticipates that "the burden of high restructuring costs and other one-off expenses" will be significantly reduced in the next 12-18 months, which would allow for a further increase in Ebitda and the generation of positive cash flow in its central scenario.
Codere's rating also incorporates its leading position in the main markets in which it operates, along with broad geographical diversification and a moderate adjusted debt/Ebitda ratio, standing at 3.1 times in 2025. In its base scenario, Moody's projects that leverage will decrease to around 2.0 times within a 12-18 month horizon.