Fitch downgrades Six Flags

Fitch Ratings said it downgraded the ratings of Six Flags, Inc. and its subsidiaries, including their issuer default ratings to CC from CCC, Six Flags' senior unsecured notes to C/RR6 from CC/RR6, Six Flags Operations Inc.'s senior unsecured notes to C/RR6 from CCC-/RR5 and Six Flags Theme Park Inc.'s secured bank credit facility to B-/RR2 from B/RR1. Six Flags' preferred stock was affirmed at C/RR6.

The ratings remain on Rating Watch negative, where they were placed Nov. 11 due to the upcoming maturity in August of Six Flags' $287.5 million mandatorily convertible preferred stock (Piers) and the company's intention to explore alternatives to address its highly leveraged capital structure.

In Fitch's view, a default or restricted default of some kind, as a result of the remedies that Six Flags may pursue to address the Piers maturity and/or its capital structure, appears probable. Six Flags does not generate enough internal cash flow to repay the Piers, and given the state of the credit markets and current pricing on Six Flags securities, Fitch believes securing traditional external financing could be extremely challenging.

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