Moody's rates Cedar Fair loans Ba2, notes B2

Moody's Investors Service said it changed Cedar Fair LP's outlook to stable from negative, upgraded the speculative-grade liquidity rating to SGL-2 from SGL-3 and assigned a Ba2 rating to its proposed $1.35 billion senior secured bank credit facilities and B2 rating to its proposed $500 million senior unsecured notes. Moody's also affirmed its Ba3 corporate family rating and upgraded the probability of default rating to Ba3 from B1.

The proceeds will be used to refinance its $1.7 billion of existing debt, Moody's said.

Moody's said the refinancing meaningfully improves the company's liquidity position and provides the company flexibility to reduce debt and manage through a period of attendance-constraining high unemployment.

Cedar Fair's leverage is high and weakly positions the company within the Ba3 corporate family rating, but the agency said it expects the company to continue paying down debt and reducing leverage.

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