Geographically diverse attractions portfolio. Strong earnings record and industry-leading margins. Growing proportion of revenues from all-year sites. Equity support from largest shareholder KIRKBI A/S. Heavily seasonal business. Exposure to challenging consumer spending trends. Highly leveraged financial position and weak debt service coverage measures. Significant operating lease liabilities. The rating on Merlin reflects Standard&Poor's Ratings Services' view of the group's highly leveraged financial position, weak debt service coverage measures, relatively high capital expenditure (capex), and significant operating lease liabilities. The rating also reflects Merlin's heavily seasonal business and exposure to challenging discretionary consumer spending trends. These risks are partially offset by Merlin's geographically diverse attractions portfolio, growing proportion of revenues from all-year sites, strong earnings track record, positive unadjusted
