S&P: Festival Fun Parks on developing watch

Standard & Poor's said it placed its rating, including the B corporate credit rating, on Festival Fun Parks LLC on CreditWatch with developing implications, indicating the possibility of an upward or downward rating movement.

The rating action follows Festival Fun Parks' announcement that it has agreed to be acquired by Parques Reunidos SA for about $330 million, the agency said.

The CreditWatch listing is based on concerns that the sale could increase Festival Fun Parks' interest expense and debt burden sufficiently to warrant a downgrade, S&P noted.

On the other hand, if Parques Reunidos injects sufficient equity and enables Festival Fun Parks to reduce debt leverage, the agency said it may revise the outlook to positive.

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