Moody's rates Cedar Fair loans Ba3

Moody's Investors Service said it assigned a Ba3 (LGD3, 34%) rating to the new term loans issued by Cedar Fair, LP and Wonderland Co. in conjunction with the company's amendment and extension of a portion of its existing guaranteed senior secured credit facility. The amendment extends the maturity of $900 million of Cedar Fair and Wonderland's $1.67 billion term loans by two years to February and August 2014.

Cedar Fair's Ba3 corporate family rating, B1 probability-of-default rating and SGL-3 speculative-grade liquidity rating and the ratings on the continuing credit facility instruments are not affected. The outlook remains negative.

The agency believes the extension and Cedar Fair's recent efforts to pay down debt improve the company's intermediate-term liquidity position by reducing the amount of obligations that need to be refinanced in 2012.

The negative outlook continues to reflect Moody's concern that continued weakness in consumer spending into 2010 could make it increasingly challenging for Cedar Fair to meet the step downs in its debt-to-EBITDA covenant over the next 18 months.

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