Global theme park operator Merlin Entertainments Ltd. (Merlin) has reported weak third-quarter (Q3) results, and we now expect S&P Global Ratings-adjusted EBITDA to fall below £550 million in 2024, while continual weak demand and cost pressures in 2025 will result in EBITDA of about £520 million-£550 million. As a result, we anticipate S&P Global Ratings-adjusted debt to EBITDA will increase significantly toward 10x (excluding non-common equity [NCE]) in 2024 and 2025, while weak EBITDA levels combined with high interest expenses are expected to lead to negative FOCF after leases despite the decrease in total capital expenditure (capex). We therefore lowered our long-term issuer credit rating on Merlin and its intermediate holding company, Motion Midco Ltd., to 'B-' from 'B', our
