After a rough year that has seen declining pay-per-view buyrates, declining ratings and just a whirlwind of controversy and cancelled fights, MMA Payout reports that Standard and Poor’s (a leading American financial analysis company) has downgraded Zuffa’s credit from BB to BB-.
Below is an excerpt from their article:
Standard & Poor’s has downgraded Zuffa, LLC’s credit rating from a “BB” to a “BB-“ this week as a result of what it calls “greater EBITDA volatility.” However, the analyst report states that the outlook for company is stable.
Standard & Poor’s issues credit ratings for the debt of public and private companies. It is one of several credit-rating agencies that has been designated a nationally recognized statistical rating organization by the Securities and Exchange Commission.
In its overview, S&P concluded that Zuffa “will experience a 30% decline in EBITDA (Earnings Before Income Tax, Depreciation and Amortization) in 2014 and greater EBITDA volatility over time than we previously had anticipated.” Despite the gloomy outlook, it stated that Zuffa’s outlook is stable and 2015 will be a recovery year for the company. This is based on the belief that injured fighters return and PPV buys and ticket prices increase.
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