Moody’s Investors Service revised its debt outlook on Powdr to stable from negative due to Moody’s expectations that the resort operator’s earnings will recover.
Moody’s affirmed ratings for Powdr Corp., including its B2 Corporate Family Rating (CFR) and B2-PD Probability of Default Rating, as well as the B1 rating for the company’s $300 million senior secured notes due 2025
Moody’s said, “The revision of the outlook to stable and rating affirmations reflect Moody’s expectation that Powdr’s earnings will recover in FY22 and that debt-to-EBITDA leverage will decline from its current level of about 11x (for the LTM period ended March 2021) to the low 8.0x at end of FY21 (ending September 2021) and below 6.5x by the end of FY22 (ended September 30, 2022). Moody’s expects the upcoming 2021/22 ski season will see visitation and other on-mountain activities largely normalize back to FY19 (pre-pandemic) levels as the coronavirus pandemic subsides and travel and capacity restraints are lifted or meaningfully eased. In addition, Powdr’s very good liquidity also supports the ratings and stable outlook because of the company’s $145 million of cash at the end of March 2021, $50 million undrawn revolver (unrated), and expected positive free cash flow of about $15 million over the next year provides financial flexibility to maintain reinvestment and meet operating needs and debt service in the event that visitation is weaker than expected.”
Powdr’s portfolio includes 11 mountain resorts—Copper Mountain and Eldora Mountain Resort in Colorado; Killington and Pico Mountain in Vermont; Boreal Mountain Resort and Soda Springs in the Lake Tahoe region of California; Mt. Bachelor in Oregon; Lee Canyon in Nevada; Snowbird and Woodward Park City in Utah; and SilverStar Resort in British Columbia.
Photo courtesy Powdr
