Tabcorp downgraded

Standard & Poor's downgraded Tabcorp's long-term credit rating by one notch, moving it from BBB to BBB-, after the company agreed to pay $75 million to extend its exclusive retail wagering licence in New South Wales.

S&P cited the funding required for Tabcorp's $75 million licence extension in NSW and strong competition in the gambling market as the key reasons for lowering the long-term rating to BBB-.

Tabcorp agreed to pay $75 million to extend its exclusive retail wagering licence in New South Wales.

Yes. The downgrade followed Tabcorp's agreement to fund the $75 million extension of its exclusive retail wagering licence in NSW, which S&P highlighted when assessing the company's credit profile.

Yes. S&P specifically cited strong competition in the gambling market as one of the reasons for downgrading Tabcorp's long-term rating.

The change was a one-notch reduction: Standard & Poor's dropped Tabcorp's long-term rating from BBB to BBB-.

The article reports that S&P lowered Tabcorp's rating due to the $75 million licence payment and competitive pressures. Everyday investors may want to note those specific drivers (licence funding and market competition) as factors behind the downgrade, while seeking further company updates for more detail.

The information reported in the article is based on Standard & Poor's decision to downgrade Tabcorp's long-term credit rating and its cited reasons: funding for the NSW licence extension and strong competition in the gambling market.