Markets

Consumer Sector Update for 09/04/2018: GC.TO

A generic image of a pen and on top of a chart.
Credit: Shutterstock photo

Thanks to a string of acquisitions, catalyzed by the privatization of Ontario Lottery and Gaming Corp. (OLG) assets, two Canadian brick and mortar casino operators are ready to gamble on new domestic markets to expand their gaming opportunities, said a report published Tuesday by S&P Global Ratings.

S&P believes Great Canadian Gaming Corp. (GC.TO) and Gateway Casinos & Entertainment Ltd., both of which have major holdings in B.C., could improve their cash flows and credit profiles in the long term with their diversification into the Ontario gaming market.

"GCGC's and Gateway's recent acquisitions of OLG assets could be the next growth driver for Canadian casino operators," said S&P Global Ratings credit analyst Silverius Miralles. "Nevertheless, the ratings trajectory for these organizations will depend on the degree of balance-sheet repair, which is contingent on strong execution to boost cash flow," Miralles added.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Commodities

Latest Markets Videos