Highly competitive dynamics in the fragmented restaurant industry, with other national and international chains; Reliance on consumer discretionary spending, exposing Hard Rock to cash flow volatility from recessions and other adverse events; and Established and strong brand with good geographic diversification of its properties. High operating lease adjusted leverage, of about 5x through 2018; Leverage increases materially in 2019 due to lease obligations for new Hard Rock branded hotels but remains within our thresholds for the rating; and Good EBITDA coverage of interest of more than 2.5x. S&P Global Ratings' stable rating outlook on Orlando, Fla.-based Seminole Hard Rock Entertainment Inc. reflects the expectation that although operating lease-adjusted debt to EBITDA will remain around 5x through 2018, leverage will increase
