S&P downgrades Six Flags

Standard & Poor's said it lowered the corporate credit rating on Six Flags Inc. and Six Flags Theme Parks Inc. to D from CCC and its 9¾% senior notes to D from CC.

The actions stem from the company's announcement that it did not make the April 15 interest payment on the 9¾% senior notes.

This does not constitute a default because the company has a 30-day grace period to make the payment before any acceleration of the senior notes or any other debt repayment but S&P said it considers a default to have occurred when the nonpayment is a function of the borrower's being under financial stress - unless confident that the payment will be made in full during the grace period.

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