S&P ups Topgolf International

S&P said it raised Topgolf International Inc.’s issuer rating to B from B-. The upgrade follows to indicate its strategically important status to its group and the recent upgrade of parent Callaway Golf Co.

“We continue to view Topgolf as strategically important to Callaway because it remains important to the group's long-term strategy and is unlikely to be sold. Topgolf demonstrated stronger operating results through the fourth quarter, including both a solid increase in its top-line revenue and an improvement in its operating efficiency that led to elevated EBITDA. Still, we expect Topgolf will continue to burn cash through the next year as it further invests in venue expansions,” S&P said in a press release.

The agency also raised its issue-level ratings on Topgolf and Callaway's debt instruments by one notch following a review of the recovery prospects for the term loan facilities that are expected to remain outstanding.

Callaway reported it has indefinitely suspended a planned refinancing deal that would have consolidated all the group’s debt at the parent level. S&P said it withdrew those ratings.

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