S&P rates Cedar Fair loans BB-

Standard & Poor's said it assigned a BB- issue-level rating with a recovery rating of 2 to Cedar Fair LP's $900 million senior secured term loan due 2014, consisting of $836 million term loan facility due 2014 and $64 million-equivalent Canadian-dollar term loan facility due 2014. All other ratings on Cedar Fair, including the B+ corporate credit rating, were affirmed.

The outlook is negative.

The term loan will extend the maturity of about 54% of the company's $1.67 billion in existing term loans from 2012 to 2014.

The agency said the B+ rating on Cedar Fair reflects high debt leverage, a large distribution payout and a weak near-term operating outlook.

In S&P's view, the partnership's competitive position and its operating track record are modest positives that do not offset these risks.

The debt-to-EBITDA ratio, pro forma for the $50 million reduction in term debt from the impending sale of surplus land in Toronto, is 5.2 times for the 12 months ended June 28.

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