S&P rates Cedar Fair loans BB-, notes B-

Standard & Poor's said it assigned to Cedar Fair LP's $1.35 billion secured credit facilities, consisting of a $1.05 billion term loan due 2017 and a $300 million revolving credit facility due 2015, a BB- rating with a recovery rating of 2, which indicates a 70% to 90% recovery for lenders in the event of a default. The agency also said it assigned to its $500 million senior notes due 2020 a B- rating with a recovery rating of 6, indicating 0% to 10% recovery in the event of a default. S&P also affirmed its corporate credit rating at B+.

The outlook is stable.

The transaction extends debt maturities and resets financial covenants, which had been tight, with only a modest negative effect on credit measures, S&P said.

The rating reflects Cedar Fair's cyclical profitability, seasonality risks, some EBITDA concentration in the Ohio and Michigan markets and high debt leverage, the agency said.

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