Moody's lowers Six Flags default rating

The credit ratings service said about $2.3 Billion of debt is affected by its downgrade of the PDR to 'Ca' from 'Caa1.'

Moody's affirmed Six Flags' 'Caa1' corporate family rating.

Earlier Wednesday, Six Flags said the move would improve its financial flexibility. The company is offering to exchange all tendered and accepted notes so that the amount of new notes issued does not exceed $400 million. Holders of about 50 percent of the company's 2010 senior notes would be required to tender the notes by the June 11 deadline.

Moody's said the exchange offer reduces the near-term potential for Six Flags to default on interest payments on the notes, but it does not materially change the company's credit profile, improve its weak cash flow problem or really trim Six Flags' "very high" leverage.