NEW YORK (AP) -Major League Baseball’s $1.4 million credit facility was given an `A’ Tuesday by Fitch Ratings, reaffirming its previous grade.
`A’ is close to the agency’s high rating of `AAA.’
Fitch said the facility, called the Major League Baseball Trust, includes $853 million in variable funding notes, $389 million in series-one term notes and $125 million series-two term notes, which were issued Monday. Those notes partially paid down $978 million in outstanding variable funding notes.
The credit facility is backed by MLB’s broadcast agreements with Fox, Turner Broadcasting and ESPN, which run through 2013. Fitch took into account MLB’s collective bargaining agreement, which runs through the 2011 season.
“Fitch’s outlook reflects the strong attendance and league revenues during the 2008 season and expectations for 2009,” the company said in a statement. “However, current national and global economic conditions indicate heightened risks for MLB, as well as all of Fitch’s sports ratings, as there will likely be increased pressure on individual and corporate discretionary spending levels and renewals of key sponsorship and advertising agreements.”
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