Moody's confirms Cedar Fair

Moody's Investors Service said it confirmed Cedar Fair, LP's Ba3 corporate family rating, concluding the review for downgrade that began in December.

The confirmation follows news that Cedar Fair has mutually agreed with Apollo Global Management to terminate Apollo's proposed $2.4 billion leveraged buyout. Moody's also said it withdrew the ratings on the proposed debt instruments that were to be issued in connection with the Apollo transaction.

Cedar Fair's B1 probability of default rating and Ba3 (LGD3) senior secured credit facility rating were not on review for downgrade and were affirmed. The loss given default rate on the facility was changed to 35% from 34% based on the current debt mix.

The outlook is negative.

The confirmation reflects the elimination of the overhang from the leveraging Apollo acquisition and a view that the company will shift its focus to the seasonal ramp up in park operations, reducing debt and leverage and alleviating the pressure from several liquidity hurdles, the agency said.

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