...- We believe Alterra Mountain Co. will be able to sustain total leverage well below 6x even though our baseline assumption is for the U.S. economy to enter a shallow recession in early 2023. Operating performance over the course of the 2021-2022 ski season exceeded our expectation for skier visitation, revenue, and EBITDA. We expect Alterra to report S&P Global Ratings-adjusted debt to EBITDA of approximately 5x for fiscal year 2022, ended July 31. - We therefore raised our issuer credit rating on Alterra Mountain Co. to 'B+' from 'B'. - We also raised our issue-level rating on the company's secured credit facility one notch to 'B+' from 'B', in line with the higher issuer credit rating, and revised our recovery rating to '3' from '4'. We assume recovery prospects have improved for lenders because Alterra will likely continue to invest in its asset base through increased capital programs through 2023. As a result, we increased our emergence enterprise valuation in a recovery scenario. -...
