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Fitch Ratings revised Light & Wonder’s credit outlook to Positive from Stable while keeping its issuer rating at BB. The agency expects the gaming supplier’s debt-to-EBITDA ratio to decline to approximately 2.9 times by the end of 2027, below its threshold for a potential positive rating action.
The Oct. 19 rating action reflects Fitch’s assessment of Light & Wonder’s strengthening leverage profile, solid free cash flow generation and disciplined capital allocation.
Fitch Sees Leverage Falling Below 3 Times
Fitch affirmed the long-term issuer default ratings of both Light & Wonder, Inc. and Light and Wonder International, Inc. at BB.
The company’s Fitch-defined EBITDA leverage stood at 3.5 times as of June 30, 2026, down from 3.6 times at year-end 2025. The agency expects that measure to fall below its 3.0-times positive rating threshold in 2027 and reach approximately 2.9 times by year-end.
Leverage measures debt relative to earnings; a lower ratio indicates less debt for each dollar of the earnings measure used.
Fitch also affirmed the company’s senior secured revolving credit facility and term loan B at BBB-, with a recovery rating of RR1. Senior unsecured debt remained rated BB, with a recovery rating of RR4.
Gaming and Digital Businesses Support the Profile
Fitch described Light & Wonder as a top-three gaming supplier with a moderately diversified product mix and solid free cash flow margins.
Traditional gaming represented about 65% of revenue for the trailing 12 months through the second quarter of 2026. Social games division SciPlay accounted for roughly 25% of revenue, while SciPlay and iGaming together generated nearly one-third of revenue and Fitch-defined EBITDA.
Liquidity and Rating Thresholds to Watch
As of June 30, Light & Wonder held $148 million in cash and had drawn $210 million on its $1 billion senior secured revolving credit facility, which matures in 2030.
Fitch’s forecast points toward lower leverage, but a future upgrade is not guaranteed. The agency identified sustained EBITDA leverage above 4.0 times as a factor that could lead to negative rating action.
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Source: As reported by Fitch.
