S&P Global Ratings on Aug. 8 downgraded its corporate credit rating on SeaWorld Entertainment Inc.-owned SeaWorld Parks & Entertainment Inc. to B from B+.
The rating agency lowered its issue-level rating on the company's $1.8 billion senior secured credit facility to B from BB-.
The action reflects S&P's reduced forecast for 2017 for the unit, which now has adjusted EBITDA going down into the mid-teens percentage due to declines in the attendance of guests, both domestically and internationally, at SeaWorld Orlando because of various reasons, including public-perception issues and increased competitive pressures. The rating agency also lowered its preliminary estimate for 2018's EBITDA to a decline in the mid-single-digit percentage area.
The outlook on SeaWorld Parks & Entertainment is negative.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.