S&P: Cedar Fair view negative

Standard & Poor's said it revised the outlook on Cedar Fair LP to negative from stable and affirmed its B+ corporate credit rating.

The agency lowered Cedar Fair's $2.1 billion first-lien facilities to BB- from BB with recovery rating revised to 2 from 1.

S&P said the downgrade was driven by a change in the emergence valuation multiple, taking into account current market conditions, recent transaction multiples and current trading multiples.

"The outlook revision is based on our expectation that the company's operating performance that could deteriorate in the peak summer 2009 operating season given our forecast of an extended period of difficult economic conditions," S&P analyst Hal Diamond said in a statement.

Ratings reflect heightened debt leverage following the 2006 $1.24 billion acquisition of Paramount Parks Inc. and its high distribution payout resulting from its master limited partnership structure, the agency said.

The partnership's competitive position and its operating track record only partially offset those factors, the agency noted.

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