S&P lowers Six Flags view to negative

Standard & Poor's said it revised its outlook on Six Flags Inc. to negative from stable, mainly reflecting weak attendance at the company's parks, higher-than-expected operating expense, a longer time frame for business turnaround and a very tight cushion of compliance with covenants.

At the same time, S&P said it affirmed its B- corporate credit rating on the company.

The agency added that the rating on Six Flags reflects the company's high debt leverage, volatile profitability and negative discretionary cash flow driven by the need for investment in new rides, labor and attractions, noting that these considerations are only partially mitigated by the size and diversity of the company's regional theme parks.

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