S&P keeps Six Flags on Watch Negative |
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Published
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Fri, 12 Jan 2007 17:33
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NEW YORK (AFX) - Standard & Poor's Ratings Services said Friday its ratings, including the 'B-' corporate credit rating, on amusement park operator Six Flags Inc. remains on CreditWatch with negative implications.The CreditWatch update followed Six Flags' Thursday announcement it agreed to sell seven of its parks for $312 million.New York-based regional theme park owner and operator Six Flags had $2.5 billion of debt and preferred stock outstanding as of Sept. 30. The company said Thursday it will use the cash proceeds of the sale, which is expected to be completed in March 2007, to reduce debt.'We remain concerned that debt reduction from the proceeds of the transaction will not reduce pro forma debt leverage, which we see as high,' said Standard & Poor's credit analyst Hal F. Diamond.The ratings agency said it will reevaluate the company's business strategies, operating outlook and liquidity in light of plans for debt reduction.Six Flags shares rose 26 cents, or 4.4 percent, to $6.16 in morning trading on the New York Stock Exchange.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Magic Mountain spared in Six Flags sale 