Fitch Ratings has revised Light & Wonder's outlook from Stable to Positive while affirming the gaming supplier's long-term issuer default rating at BB. The action reflects an expected decline in leverage rather than a rating upgrade already completed.
The October 19 rating action projects Fitch-defined leverage at about 2.9 times by the end of 2027. It stood at 3.5 times on June 30, down slightly from 3.6 times at the end of 2025.
Fitch expects voluntary debt repayments and EBITDA growth across Light & Wonder's gaming, SciPlay and iGaming businesses to support the reduction. The agency sees leverage moving toward 2.5 times over the longer term, which would place the balance sheet closer to the company's stated target range.
That scenario also assumes a change in capital allocation. Light & Wonder may put more cash toward debt in 2027 after prioritising share repurchases. The company said in its second-quarter report that it returned $156 million to shareholders through buybacks in the first half of 2026.
A Positive outlook signals that an upgrade is possible if the expected credit improvement materialises. It does not guarantee one. Fitch continues to cite Light & Wonder's position among the largest gaming suppliers, its product mix and free cash flow margins as support for the BB rating.
