S&P upgrades Cedar Fair

S&P said it raised Cedar Fair LP’s issuer rating to B from B-, its secured debt to B+ from B and the rating on the company's unsecured debt to CCC+ from CCC. The secured debt’s 2 recovery rating and unsecured debt’s 6 recovery rating are unchanged.

Attendance at Cedar Fair’s theme parks climbed to about 85% of 2019 levels on a comparable same-day basis for the five weeks before Aug. 1.

“The upgrade to B reflects our expectation that Cedar Fair's attendance trends at its theme parks and increased spending per capita could reduce S&P Global Ratings' measure of leverage to the mid-to-high 5x area by the end of 2022,” the agency said in a press release.

S&P noted that Cedar Fair’s management is implementing a series of initiatives that it expects will generate around $50 million of incremental EBITDA by 2024 at pre-pandemic levels of attendance.

The outlook is stable.

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