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Conference Realignment Board

RappinRodney

Joined: 03/29/2015 Posts: 18
Likes: 10


Do Moody's, Fitch, or Standard & Poor's think Louisville's an upgrade?


Over the last few years, The Yum! Center's bond ratings have seriously deteriorated. In 2013, Moody's cut the Yum! Center's bond rating on it's entire $380 million issuance to junk. In the last year, S & P rated those bonds with their lowest investment-grade, provided that revenues remained stable. However, revenue did not remain stable. A couple months later, the Yum! Center announced that its Y-o-Y revenue for 2015 had decreased by 52% from $7+ million to $3+ million. So, the Yum! Center was holding onto that last "good" rating by the skin of their teeth.
If I'm a bank/insurance company/pension fund who isn't allowed to own non-investment grade debt, and consequently has to sell those bonds at a loss, I might be looking to lawyer-up, given the University of Louisville's unusually sweetheart profit/loss sharing arrangement with the Yum! Center is a major catalyst for those bond ratings dropping. All told, Louisville could lose a major source of income from the Yum! Center if those bonds are renegotiated.

(In response to this post by ren_hoek)

Posted: 09/26/2016 at 8:49PM



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Current Thread:
 
  
For those who think Louisville isn't an upgrade... -- ren_hoek 09/26/2016 06:42AM
  Who? ** -- Freddyburg Hokie 09/29/2016 01:01AM
  Without Jackson and the hype after the FSU beatdown -- Chicago Maroon 09/28/2016 12:27PM
  Texas Tech was hot when they had Crabtree and others. -- reestuart 09/29/2016 08:12AM
  I'll take "reactions" for $400 please -- Calamitous 09/26/2016 8:39PM
  They've also had gameday at JMU. -- reestuart 09/26/2016 08:24AM
  Lville > Maryland -- BigCrumpy 09/26/2016 2:29PM
  Losing Maryland was not a good thing. -- Old Line Hokie 09/26/2016 3:05PM
  Yup. And the B1G wouldn't have taken Louisville. -- Maroon Baboon 09/26/2016 3:33PM
  Louisville is flush with Papa John's cash. -- EDGEMAN 09/26/2016 6:36PM
  I 77 doesn't go to Louisville ** -- East Cobb Hokie 09/27/2016 2:37PM
  More long term upside? Thanks for the laugh. ** -- marcbvtgm 09/27/2016 2:02PM
  $$ is temporary, academics are not -- WestyHokie 09/26/2016 10:09PM
  That would have been interesting. -- Old Line Hokie 09/26/2016 7:28PM
  And Mizzou would not be in SEC. ** -- East Cobb Hokie 09/27/2016 2:46PM
  Pure conjecture on my part. -- EDGEMAN 09/26/2016 7:53PM

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