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September 19, 2006

S&P May Lower Six Flags Rating Further Into Junk

New York -- Standard & Poor may lower Six Flags rating further into junk territory due to the theme park operator's weak financial performance. Monday S&P cited weak profits, negative discretionary cash flow and rising debt as reasons.

"The company's turnaround effort appears to be more challenging than we had previously anticipated, requiring more time, investment, and uncertainty," said S&P credit analyst Hal F. Diamond, in a statement.

Six Flags has a 'B minus' corporate rating and has been placed on "CreditWatch" by S&P.

As of June 30, Six Flags had an estimated $2.6 billion in debt and preferred stock outstanding.

The junk rating could make it more costly for Six Flags to operate.

S&P said, it will reevaluate Six Flags' business strategies and operating outlook based on third-quarter results.

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