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. Cyclical business, exposed to challenging consumer spending trends. Highly leveraged financial position. Significant operating lease liabilities. The rating on Luxembourg-based Merlin Entertainments S.a.r.l. (Merlin) reflects Standard&Poor's Ratings Services' view of the group's "highly leveraged" financial risk profile and its "fair" business risk profile. Merlin's high debt leverage, relatively high capital expenditure (capex), and significant operating lease liabilities underpin our view of the group's financial risk profile as "highly leveraged". Mitigating Merlin's highly leveraged capital structure is our assessment of the group's liquidity profile as "adequate," which gains support from our view
