Moody's rates Cedar loan Ba2

Moody's Investors Service said it assigned a Ba2 (LGD3, 37%) rating to Cedar Fair, LP's proposed $1.18 billion senior secured term loan B in conjunction with a re-pricing and maturity extension of the facility.

Cedar Fair's Ba3 corporate family and probability of default ratings and stable outlook are not affected, Moody's said.

The proposed refinancing favorably reduces cash interest expense and extends the maturity of the term loan by about one year to December 2017 from December 2016, Moody's said.

The ratings reflect the good operating cash flow and strong EBITDA margins generated from the portfolio of regional amusement parks, high leverage and exposure to discretionary consumer spending, the agency said.

The stable outlook reflects the view that Cedar Fair will maintain a good liquidity position and continue to generate meaningful cash flow, Moody's said.

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