Moody's alters Cedar Fair view to stable

Moody's Investors Service said it changed the outlook to stable from negative and affirmed Cedar Fair, LP's B2 corporate family rating, Ba2 senior secured note and credit facility and B3 senior unsecured note ratings. The outlook was changed to stable from negative.

“The affirmation of the CFR and change in the outlook reflect the strong recovery from the impact of the pandemic as well as the improvement in free cash flow during the summer operating season,” Moody’s said in a press release.

The agency also raised Cedar Fair's speculative grade liquidity to SGL-2 from SGL-3 as the company held total liquidity of $922 million as of the third quarter, including $359 million of revolver availability and $563 million of balance sheet cash.

“Free cash flow (FCF) turned modestly positive ($41 million as of LTM Q3 2021) and Moody's projects FCF will remain positive in 2022, despite higher expected capex as attendance levels continue to recover from the impact of the pandemic,” the agency said.

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