Fitch Revises Light & Wonder Outlook to Positive on Expected Leverage Decline to 2.9 Times
Fitch revised Light & Wonder’s outlook to positive while affirming the BB rating, citing leverage improvement to 3.5x and expected decline to 2.9x by end-2027. Drivers are voluntary debt paydown and EBITDA growth across traditional gaming, iGaming and social segments. Revenue is projected to rise at mid-single-digit CAGR.
SCCG Take — Light & Wonder’s deleveraging path and moderated share repurchases free capital for targeted growth. Suppliers with similar discipline may see rating agencies respond in kind.
Fitch Ratings revised its outlook on Light & Wonder Inc to positive from stable. The agency affirmed the long-term Issuer Default Rating at BB for both Light & Wonder and Light & Wonder International Inc. Leverage improved modestly to 3.5 times as of June 30 from 3.6 times at end-2025, as reported by GGRAsia.
The revision reflects strengthening in the EBITDA leverage profile. Fitch expects leverage to decline to approximately 2.9 times by the end of 2027. Drivers include voluntary debt repayment and EBITDA growth across all business segments.
Leverage Path and Capital Allocation
Fitch stated this trajectory advances Light & Wonder’s goal of maintaining a lower leverage profile. Near-term deleveraging will likely come from voluntary repayments on the 2030 senior secured revolver facility and existing term loans. Share repurchases, significant in 2025 after the Nasdaq delisting and transition to sole primary listing on the Australian Securities Exchange in November that year, could moderate as cash flow directs toward debt reduction.
Over the longer term, leverage could reach about 2.5 times as the supplier moves toward its 2028 adjusted EBITDA target of US$2 billion. Total revenue is forecast to grow at a mid-single-digit compound annual growth rate over the medium to long term.
Segment Performance and Installed Base Outlook
Light & Wonder maintains a moderately diversified product mix. Traditional gaming represents about 65 percent of revenue based on the latest available data, with operations spanning iGaming and social casino gaming. The rating affirmation also cited solid free-cash-flow margins and a disciplined capital allocation strategy.
The installed base is expected to continue growing. This will occur as the firm expands its premium-game portfolio, broadens presence across gaming adjacencies and enters additional product markets. In August, second-quarter revenue rose 2.4 percent year-on-year while net income increased 26.3 percent. The company guided to full-year 2026 consolidated adjusted EBITDA growth in the mid- to high-single-digit percentage range.
The positive outlook signals sustained execution on balance-sheet priorities while pursuing segment expansion.
Reporting: GGRAsia
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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