Tabcorp's Rating Not Immediately at Risk Due to Austrac Investigation, Fitch Says
Tabcorp Holdings' (ASX:TAH) credit rating is not expected to see an immediate impact from an early-stage enforcement investigation launched by the Australian Transaction Reports and Analysis Centre (Austrac), Fitch Ratings said Friday.The regulator is probing the company's compliance with anti-money laundering and counter-terrorism financing obligations, citing concerns about the wagering operator's ability to identify and mitigate associated risks.Austrac could decide against any further action on Tabcorp, but any enforcement might lead to civil penalties, legal costs, or remediation expenses that would impact the company's financial profile, Fitch said. Enforcement action could also point to governance deficiencies that would be relevant to the rating."Tabcorp's financial profile is currently strong for the rating, which provides the capacity to absorb moderate additional costs, if required," the ratings agency said, adding that it does not currently have sufficient information to evaluate the scale or likelihood of the investigation's outcome.Fitch noted, however, that the development does add to wider regulatory scrutiny of Australia's gaming and wagering sector, which may increase compliance costs for operators across the space.Tabcorp's shares fell nearly 13% in recent Friday trade.