Theme Park Operator Merlin’s Bonds Slide After Credit Downgrade
Visitors ride 'The Smiler' roller coaster at Alton Towers theme park in Alton, UK.
Photographer: Tom Skipp/BloombergMerlin Entertainments Ltd’s senior secured bonds are set for a record drop, after S&P Global Ratings warned that the theme park operator could run low on cash in a year.
The firm, which operates venues including Legoland and Alton Towers in the UK, is burning through cash as it grapples with depressed earnings and interest expenses, according to a note from the ratings agency on Wednesday. The analysts downgraded the company to CCC+, a rating five notches above default that indicates a company is dependent on favorable conditions to meet financial commitments.