Mets stadium owner credit downgraded at Moody's, Yankees Stadium outlook now negative

Queens Ballpark Co. LLC, which owns Citi Field where Major League Baseball's New York Mets play, had its credit rating downgraded to Baa3 at Moody's Investors Service--just one notch above "junk" status--from Baa2, citing a "weakened liquidity position" as the COVID-19 pandemic could lead to the "shortest season in MLB history." The outlook was revised to negative from stable, meaning the next rating move is likely to put the credit rating into "junk" territory. Moody's said the downgrade is a result of the delayed start to the 2020 baseball season, coupled with the inability of the owners and players to timely negotiate an agreement to start the 2020 season. "As a result, Ballpark continues to rely on equity contributions from the owners as pledged revenues are insufficient to cover costs, including debt service," Moody's said. Late Monday, MLB Commissioner Rob Manfred said he was "not confident" the 2020 season will start at all. The credit rating agency also revised the outlook on Yankees Stadium LLC to negative from stable, citing the "unprecedented challenges" related not only to the coronavirus pandemic, but also to the inability to negotiate a deal with the players union for the 2020 season, a year before the current collective bargaining agreement is set to expire on Dec. 31, 2021. The rating remained at Baa1, which is three notches above "junk" territory. Yankee Stadium LLC operators the home ballpark of the MLB's New York Yankkes.

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