Research Update: UFC Holdings LLC 'B' Rating Affirmed On Mostly Intact 2020 Events; Outlook Stable

While UFC Holdings LLC held fewer events because of the COVID-19 pandemic during the second quarter, the company has adapted the way it holds events so that it could deliver 2020 event output in-line with its contractual obligation with ESPN. This increases the likelihood UFC will generate revenue from full media rights payments this year. As a result, we are affirming all our ratings on UFC, including the 'B' issuer credit rating, reflecting our updated base-case forecast that our measure of adjusted leverage could be in the low-6x area in 2020. We removed the ratings from CreditWatch, where we placed them with negative implications on March 16, 2020. The stable outlook reflects our updated leverage forecast and expectation that, despite

...- While UFC Holdings LLC held fewer events because of the COVID-19 pandemic during the second quarter, the company has adapted the way it holds events so that it could deliver 2020 event output in-line with its contractual obligation with ESPN. This increases the likelihood UFC will generate revenue from full media rights payments this year. - As a result, we are affirming all our ratings on UFC, including the 'B' issuer credit rating, reflecting our updated base-case forecast that our measure of adjusted leverage could be in the low-6x area in 2020. - We removed the ratings from CreditWatch, where we placed them with negative implications on March 16, 2020. - The stable outlook reflects our updated leverage forecast and expectation that, despite further risks related to COVID-19 including a prolonged period of low live attendance revenue, UFC will likely keep its event schedule intact and earn the contracted media rights fees....

Research Update