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Research Update: Six Flags Inc. Corporate Credit Rating Lowered To 'CCC+' From 'B-'; Outlook Negative Nov 07 Product Image

Research Update: Six Flags Inc. Corporate Credit Rating Lowered To 'CCC+' From 'B-'; Outlook Negative Nov 07

  • Published: November 2007
  • Standard & Poors

Abstract
On Nov. 9, 2007, Standard & Poor's Ratings Services lowered its ratings on theme park operator Six Flags Inc., including the corporate credit rating to 'CCC+' from 'B-'. The rating outlook remains negative. The downgrade is based on declining profitability, negative discretionary cash flow, and rising debt leverage that has not been meaningfully addressed by asset sales. The company's turnaround effort has been more challenging than Standard & Poor's had anticipated, involving more time, investment, and uncertainty. Additional operating expenses associated with new management's plan to make the parks more appealing to families and to enhance the guest experience, as well as unsuccessful marketing expenditures, have hampered financial performance. Management's strategy of attracting family audiences has faced challenges on account...

Companies mentioned in this report are:
- Six Flags Entertainment Corp.
- Six Flags Theme Parks Inc.

Action: Downgraded

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance READ MORE >

- Six Flags Entertainment Corp.
- Six Flags Theme Parks Inc.

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