Moody’s ups Cedar Fair, rates loans Ba2

Moody's Ratings said it upgraded Cedar Fair, LP's corporate family rating to B1 from B2 and probability of default rating to B1-PD from B2-PD. The agency also assigned Ba2 ratings to the company's planned $1 billion senior secured term loan B and $300 million senior secured revolving credit facility, which were placed on review for upgrade.

Cedar Fair’s senior unsecured notes rated B3 and senior secured notes rated Ba2 are unchanged. All these credit ratings remain on review for upgrade reflecting the potential for an improvement in the credit profile in connection with the pending merger with Six Flags Entertainment Corp., expected to close in the late second quarter. The company's SGL-2 rating is unchanged.

“The upgrade of Cedar Fair's CFR reflects steadily improved credit metrics since the effects of the pandemic. Financial leverage has improved from 8.1x at year-end 2021 to 4.6x as of year-end 2023 (including Moody's Ratings' adjustments). Governance is a key driver of the rating action, as Cedar Fair has been focused upon reducing financial risk through deleveraging,” Moody’s said in a press release.

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