Bitcoin price today: falls to 2-week low below $113k ahead of Fed Jackson Hole
Investing.com -- S&P Global Ratings has downgraded Six Flags Entertainment Corp. to ’BB-’ from ’BB’ with a negative outlook, citing continued operating weakness that will keep leverage above 5x for the next 18 months.
The theme park operator’s second-quarter performance fell significantly below expectations, with attendance dropping 9% compared to the combined portfolio of legacy Six Flags and Cedar Fair operations last year. Weather disruptions affected nearly 20% of operating days, including 49 days of complete park closures.
Six Flags has substantially reduced its 2025 EBITDA guidance to between $860 million and $910 million, down from the previous $1.08 billion to $1.12 billion range. The company reported that its active season pass base declined 8% from the prior year.
Despite these challenges, Six Flags noted some improvement in July as weather normalized, with attendance increasing 1% across the full five weeks of the month. The last two weeks of July showed an 8% attendance increase.
S&P now forecasts attendance for the combined portfolio will decline 3-4% in 2025, with per capita spending also expected to drop 3-4% due to a lower-yielding attendance mix and recent promotional offerings.
The rating agency expects Six Flags’ leverage to be in the mid-6x range by the end of 2025, well above the 4.5x threshold for the previous ’BB’ rating. S&P anticipates leverage improving to the low-5x area in 2026, supported by improved season pass sales and reduced capital expenditures.
Six Flags has already sold 700,000 units of 2026 season passes since the end of the second quarter, double the amount sold in July 2024. The company has also reduced its planned capital expenditure to about $400 million from the previous estimate of $450-500 million.
The company announced that CEO Richard Zimmerman will step down at the end of this year and that it plans to reassess its previously shared long-term guidance.
Six Flags America in Bowie, Maryland, and its accompanying water park, Hurricane Harbor, will permanently close at the end of the 2025 operating season and be marketed for sale. The company also plans to sell excess land in Richmond, Virginia, with management estimating these assets could generate gross proceeds of at least $200 million for debt reduction.
S&P could lower its rating further if leverage remains above 5.5x, but could revise the outlook to stable if park investments improve operating performance enough to bring leverage below this threshold, or if accelerated divestitures allow for additional debt repayment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.