EUR 407.14 For Business Accounts Only

UBISOFT - Rating Report

RATING RATIONALE

· We assign an inaugural BBB– corporate credit rating for Ubisoft.
· Our rating is supported by Ubisoft’ strong position as the world’s No. 3 video games publisher, just behind Activision-Blizzard and Electronic Arts. It enjoys very promising industry fundamentals with a sharp rise in the global player base generated by new technologies as well as the dawning of emerging markets and occasional players. The trend for realistic and in-depth video games, which require very high development costs, has entailed a consolidation of the sector and is keeping new entrants away. The French firm is one of a handful of publishers able to release best-sellers every year, and is, in our view, the most creative one. Its ability to create new franchises is a crucial advantage as it makes sales more recurrent, driven by a large back-catalogue of video games, avoids the payment of royalties to external developers, and is less expensive than purchasing existing licenses.