S&P upgrades Zuffa loan

Standard & Poor's said it affirmed its BB corporate credit rating on Zuffa LLC. The outlook is stable.

At the same time, S&P raised its issue-level rating on Zuffa's $510 million senior secured credit facility to BB+ from BB and revised the recovery rating to 2 from 4, indicating an expectation for substantial (70% to 90%) recovery for lenders in the event of a payment default.

The facility consists of a $60 million senior secured revolving credit facility due 2018 and a $450 million senior secured term loan due 2020.

"The upward revision of the recovery rating reflects, in part, the maturity and increased popularity of the mixed martial arts sports category and our assumption that the category would remain popular with a core fan base even if the company were to default," said S&P credit analyst Stephen Pagano in a news release.

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