S&P lowers Zuffa

Standard & Poor's said it lowered its ratings on Zuffa LLC (d/b/a Ultimate Fighting Championship).

The corporate credit rating was lowered to BB- from BB, the agency said, adding that the outlook is negative.

The issue-level rating on Zuffa's $350 million senior secured credit facilities was lowered to BB- from BB, S&P said, noting that the recovery rating on this debt remains at 3.

The agency said that the downgrade follows the second consecutive quarter of operating performance that was meaningfully below its expectations, adding that the BB- rating reflects Zuffa's revenue and cash flow volatility given its primarily event-driven business model, vulnerability to changing consumer tastes and relatively short operating history.

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