Research Update: Parques Reunidos' Parent Company Piolin Bidco 'B-' Ratings On CreditWatch Negative Due To COVID-19 Uncertainty

The COVID-19 pandemic has led to the temporary closure of all the regional and local theme parks of Spain-based Parques Reunidos. Although our current base case is for COVID-19 to peak between June and August 2020, downside risks remain given the uncertainty around the magnitude of the outbreak. By our estimate, the group does not face any imminent liquidity risk over the next few months, but a prolonged shutdown could place strain on the group's credit quality. We are placing on CreditWatch with negative implications our 'B-' ratings on Piolin Bidco, the parent company of Parques Reunidos. We plan to resolve the CreditWatch once we have assessed the impact of COVID-19 on the group's capital structure, liquidity, and financial performance

...- The COVID-19 pandemic has led to the temporary closure of all the regional and local theme parks of Spain-based Parques Reunidos. - Although our current base case is for COVID-19 to peak between June and August 2020, downside risks remain given the uncertainty around the magnitude of the outbreak. - By our estimate, the group does not face any imminent liquidity risk over the next few months, but a prolonged shutdown could place strain on the group's credit quality. - We are placing on CreditWatch with negative implications our 'B-' ratings on Piolin Bidco, the parent company of Parques Reunidos. - We plan to resolve the CreditWatch once we have assessed the impact of COVID-19 on the group's capital structure, liquidity, and financial performance and position....

Research Update