Moody’s affirms Cirque du Soleil

Moody's Investors Service said it affirmed CDS U.S. Intermediate Holdings, Inc. (doing business as Cirque du Soleil) B2 corporate family rating and B2-PD probability of default rating.

Concurrently, the agency affirmed a B1 rating on the first-lien credit facilities, consisting of a $635 million senior secured term loan and $120 million senior secured revolving credit facility, and Caa1 rating on the $150 million second-lien senior secured term loan.

The outlook is stable.

Moody’s said the B2 corporate family rating reflects Cirque du Soleil’s strong franchise of branded shows, flexible operating model and ability to continuously develop creative content and source talent in order to provide for a variation in its themed shows to maintain consumer appeal.

The company is weakly positioned for its rating with high leverage of 6.1 times debt-to-EBITDA (LTM as of April 3, incorporating Moody's standard operating lease adjustments) following weaker than expected 2015 results, with strong drive toward performance improvements in 2016 via greater number of performances, increased ticket pricing and higher occupancy, the agency said.

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