Fitch Ratings said casino equipment makers International Game Technology (IGT) and Everi Holdings Inc "remain positive."

It follows the announcement last Friday that IGT's gaming and digital business and Avery will be simultaneously acquired in a full cash deal of about $6.3 billion by a fund managed by affiliates of private equity firm Apollo Global Management. The deal is expected to close by the end of the third quarter of 2025.

"Fitch does not expect any significant changes to its capital structure and its respective recovery," Fitch said in an update on Monday.

Fitch's rating on existing senior secured debt of IGT and related lottery business IGT Lottery Holdings BV is 'BBB-'/'RR2.

A Fitch "BBB" rating indicates expectations for default risk are currently low. While the ability to pay financial commitments is considered appropriate, "negative business or economic conditions are more likely to impair this ability," according to the agency's website

Avery's shareholders will receive $14.25 per share in cash on Thursday (July 25), a 56% premium to Avery's closing price.

IGT will receive $4.05 billion in total cash proceeds. "A significant portion of the cash proceeds is expected to be used to repay debt and return to shareholders," IGT said.

In late February, IGT and Avery announced that IGT had reached an agreement to separate its gaming and digital businesses through a tax split on IGT shareholders and then combine them with Avery immediately. The deal is now closed, it said.

Fitch said in an update on Monday: "Our last rating action was a rating positive for IGT and IGTBV on March 1, 2024.

"The valuation measure reflected the creation of a pure-play lottery business that would hold a leading market position and maintain predictable and resilient cash flow, a simplified capital structure with EBITDA [earnings before interest, taxation, depreciation and amortization] leverage, and strong liquidity that fell below 3.0x at close."

The rating agency also observed that Avery's management "expects existing debt to be refinanced" when it closes the deal.

IGT gaming and digital businesses and Everi will become "private-owned companies" that are part of one combined company, according to Friday's announcement.

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