| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for SeaWorld Parks & Entertainment Inc. > News item |
Moody’s cuts SeaWorld, facilities
Moody's Investors Service said it downgraded SeaWorld Parks & Entertainment, Inc.'s corporate family rating to B2 from B1 and first-lien term loan facilities and revolver were to B2 from B1.
The outlook was changed to negative from stable.
“The ratings were downgraded and the outlook was changed to negative due to weaker than expected performance during the first half of 2017 as well as projections that performance would remain challenging through the second half of 2017,” Moody’s said in a news release.
The agency said SeaWorld's B2 corporate family rating reflects the high leverage of 5.8x as of Q2 2017 and the impact over the last several years of negative publicity due to its orca shows and from competitive conditions in its Orlando market.
Moody’s said SeaWorld has an adequate liquidity position as reflected in its SGL-3 rating supported by cash of $34 million as of Q2 2017 and cash flow to cover expected capital spending of about $165 to $175 million in 2017 in addition to required debt service.
The agency said it anticipates the company will maintain access to the revolver and remain in compliance with the credit facility covenants in the near-term, but the cushion of compliance is expected to be reduced given recent EBITDA guidance.
“The negative outlook reflects the projected tightening of its total leverage ratio compared to the required covenant level going forward and our expectation that leverage will increase above 6x as calculated by Moody's at the end of the 2017,” the agency said.
Ongoing competitive conditions in its Orlando, Fla., market, uncertain international tourist visitation, and brand perceptions remain risks to performance.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.