S&P raises company to investment grade

Monday, Feb. 11, 2002 | 9:47 a.m.

Standard & Poor's raised its credit rating on International Game Technology, allowing the Reno slot manufacturing giant to shed itself of the "junk" rating it has held for the last several years.

S&P hiked IGT's corporate credit and senior unsecured ratings from "BB-plus" to "BBB-minus." BBB-minus is considered the lowest investment-grade rating.

"IGT has always felt that investment-grade was an objective we'd like to accomplish," IGT Chief Executive Tom Baker said. "The company is strong, our cash flow is strong, and it's nice to see S&P agrees with that."

Higher credit ratings can result in lower interest rates for a company, and can make it easier for a company to take on debt. With the move to investment grade, many bond funds that shy from "junk bonds" can now invest in IGT debt.

"We don't have any current (plans) to raise any new capital, but if we chose to do so this would be helpful," Baker said.

S&P also raised the ratings of Anchor Gaming -- acquired by IGT at the end of December -- from BB-minus to BB-plus.

"The upgrade reflects IGT's continued solid operating performance, modest debt leverage, and enhanced business profile following the completion of its acquisition of Anchor Gaming," S&P's report said.