S&P cuts Clarion

S&P said it downgraded the issuer and issuer ratings on Clarion Events Ltd. to CCC+, removed the ratings from CreditWatch with negative implications and assigned a negative outlook. Comet Bidco Ltd. is Clarion’s parent.

“The pandemic will likely have a more material effect on the company’s revenues, earnings, cash flow and liquidity in FY2021 than we estimated when we placed the ratings on CreditWatch with negative implications on March 18, 2020,” S&P said in a press release.

Since then, Clarion canceled and postponed most of the shows originally scheduled to run between April and September 2020 globally.

“Clarion did not hold any events in April and May and expects most shows will only return in October 2020 and beyond,” the agency said. We now estimate that Clarion’s revenue could reduce by about 45% to £190 million-£210 million in FY2021 from about £400 million in FY2020,” the agency said.

The outlook reflects the risk that the business disruption from the pandemic could further hurt Clarion’s credit metrics and liquidity, with uncertain prospects for recovery in financial 2022, S&P said.

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