Moody's lowers Six Flags probability of default to D

Moody's Investors Service said it changed Six Flags, Inc.'s probability of default rating to D from Ca following the company's announcement that it filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code on June 13.

The downgrade of the probability of default rating to D reflects Six Flags' bankruptcy filing, which Moody's said it classifies as a default event, consistent with the D probability of default rating.

The corporate family rating and ratings for individual debt instruments are based on application of Moody's loss given default framework utilizing an expected 50% family recovery rate based on a 5.0x distress multiple to projected EBITDA of $220 million to $230 million for 2009, the agency said.

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