S&P upgrades Merlin

Standard & Poor's said it raised to B+ from B the long-term corporate rating on Merlin Entertainments Sarl, along with the rating on its secured facilities to BB- from B+.

The recovery rating remains unchanged at 2, indicating 70% to 90% expected recovery in a default.

The upgrade reflects an improvement in Merlin's business risk profile, which is now assessed at the high end of the fair category, S&P said.

It also reflects expectations of continued improvement in the group's credit metrics over the near- to medium-term, although the group's financial risk profile is still viewed as highly leveraged, the agency said.

Despite economic weakness and a challenging environment for discretionary spending, Merlin has consistently generated positive top-line and profitability growth over the past five years, S&P said.

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