Research Update: Parques Reunidos (Piolin Bidco) Upgraded To 'B-' On Trading Recovery; Outlook Negative

Parques Reunidos demonstrated a rebound in the key summer season, with revenue and management EBITDA almost back to 2019 levels; we expect the company will continue to recover as the operating environment normalizes and attendance returns. We forecast adjusted debt to EBITDA will decrease but remain very high at 10.0x in 2021 and toward 7.7x in 2022, while free operating cash flow (FOCF) after leases should be positive in 2021 and about neutral in 2022. We raised our long-term term issuer credit and issue ratings on Parques Reunidos' parent entity Piolin Bidco S.A.U. to 'B-' from 'CCC+'. The negative outlook reflects the limited headroom in the rating and the possibility that we could lower our rating if the group's performance

...- Parques Reunidos demonstrated a rebound in the key summer season, with revenue and management EBITDA almost back to 2019 levels; we expect the company will continue to recover as the operating environment normalizes and attendance returns. - We forecast adjusted debt to EBITDA will decrease but remain very high at 10.0x in 2021 and toward 7.7x in 2022, while free operating cash flow (FOCF) after leases should be positive in 2021 and about neutral in 2022. - We raised our long-term term issuer credit and issue ratings on Parques Reunidos' parent entity Piolin Bidco S.A.U. to 'B-' from '###+'. - The negative outlook reflects the limited headroom in the rating and the possibility that we could lower our rating if the group's performance and credit metrics do not improve in line with our base-case scenario....

Research Update