S&P lowers Zuffa to negative

Standard & Poor’s said it revised the outlook on Zuffa LLC to negative from stable.

The agency also said it affirmed all of its ratings, including its BB- corporate credit rating.

The negative outlook revision reflects an updated forecast for 2014 EBITDA, with it now declining to about 40% due to a change to a marquee fight card in the fourth quarter of 2014, S&P said.

Another fighter injury has caused anticipated pay-per-view buys and event-ticket prices to decline further, as well as higher remarketing expenses for the event, the agency said.

The negative outlook reflects a belief that Zuffa’s operating performance will deteriorate significantly this year, resulting in very weak leverage in the high-5x range in 2014, S&P said.

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