Aristocrat Leisure Ltd. on Monday responded to a ratings agency’s decision to downgrade the slot machine manufacturer’s debt.
The downgrade by Standard & Poor’s followed the Sydney-based company’s announcement that its annual profit could decline by 57 percent due to weak sales. Aristocrat Leisure also attributed its profit drop to the strength of the Australian dollar.
Standard & Poor’s on Friday downgraded Aristocrat’s debt to junk, lowering it one level from BBB- to BB+. The company was also placed on CreditWatch negative.
"Whilst Aristocrat is disappointed with this outcome the impact on the company’s performance is immaterial," the company said in a Monday statement. "The only consequence of a downgrade will be mildly increased borrowing costs under Aristocrat’s existing bank facilities."
Aristocrat Leisure employs about 650 people in Las Vegas through its Aristocrat Gaming unit.