On November 18, 2020, Moody's Investors Service downgraded its corporate family rating on Alterra Mountain Company to B2 from B1, its probability of default rating to B2-PD from B1-PD. The downgrade reflects the ratings agency’s expectation that Alterra's earnings will decline in fiscal year ending July 31, 2021 from already softer levels generated in FY 2020 and that leverage will remain elevated even with an expected recovery in FY 2022.

The Company’s rating also reflects its elevated financial leverage with pro forma Moody's adjusted debt/EBITDA rising to slightly above 10x by end of FY2021. Moody's Investors expects the upcoming 2020-2021 ski season to remain challenging given the ongoing coronavirus pandemic and expects earnings to decline meaningfully vs FY2020. The rating also reflects that Alterra's operating results are highly seasonal and exposed to varying weather conditions and discretionary consumer spending. Governance factors primarily relate to the Company's aggressive acquisition strategy with acquisitions funded mainly with incremental debt.

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