Research Update: Vail Resorts Inc. 'BB' Ratings Affirmed On Stronger-Than-Expected EBITDA Generation; Outlook Stable

We have upwardly revised our base-case fiscal 2021 (ending July 31) revenue and EBITDA for owner and operator of destination mountain resorts and regional ski areas, Vail Resorts Inc., in light of its stronger-than-expected second-quarter 2021 EBITDA generation and EBITDA guidance for the nine months ending April 2021. We affirmed all ratings on Vail, including our 'BB' issuer credit rating, and removed them from CreditWatch, where we placed them with negative implications on Dec. 15, 2020. The stable outlook reflects our expectation that Vail will maintain leverage near our 4.25x downgrade threshold in fiscal 2021. Additionally, under our base-case assumptions we believe Vail could sustain leverage below this downgrade threshold in fiscal 2022 even if dividends resume and with a

...- We have upwardly revised our base-case fiscal 2021 (ending July 31) revenue and EBITDA for owner and operator of destination mountain resorts and regional ski areas, Vail Resorts Inc., in light of its stronger-than-expected second-quarter 2021 EBITDA generation and EBITDA guidance for the nine months ending April 2021. - We affirmed all ratings on Vail, including our '##' issuer credit rating, and removed them from CreditWatch, where we placed them with negative implications on Dec. 15, 2020. - The stable outlook reflects our expectation that Vail will maintain leverage near our 4.25x downgrade threshold in fiscal 2021. Additionally, under our base-case assumptions we believe Vail could sustain leverage below this downgrade threshold in fiscal 2022 even if dividends resume and with a moderate amount of leveraging acquisitions, as well as a normal 2021/2022 ski season with average snowfall....

Research Update