S&P rates Cedar Fair loan BB+

Standard & Poor's said it affirmed the BB- corporate credit rating on Cedar Fair LP.

The outlook is stable.

S&P also said it assigned a BB+ rating to the company's proposed $885 million senior credit facility consisting of a $255 million revolver due 2018 and a $630 million term loan due 2020 with a recovery rating of 1, indicating 90% to 100% expected default recovery.

The proceeds from the proposed term loan, along with an expected senior unsecured debt offering, will be used to repay about $1.1 billion in outstanding balances under Cedar Fair's existing term loan.

The ratings reflect the company's fair business risk profile and aggressive financial risk profile, S&P said.

Cedar Fair's fair business risk profile considers that management will continue to control costs and EBITDA margin will be maintained in the mid-30% range over the next few years, the agency said.

The assessment also reflects Cedar Fair's good geographic diversity, operating 15 parks in eight states and Canada, as well as the relatively high barriers to entry in the industry, S&P said.

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