Standard and Poor's downgrades KFC Yum Center bonds

Standard and Poor's downgrades KFC Yum Center bonds

Standard and Poor's downgrades KFC Yum Center bonds

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by Doug Proffitt

WHAS11.com

Posted on December 7, 2012 at 8:28 PM

Updated Friday, Dec 7 at 8:29 PM

Louisville, Ky. (WHAS) – One of the world’s biggest credit ratings services is downgrading the bonds for the KFC Yum Center from stable to negative, while at the same time, saying that improving revenues appear to be happening.

Standard and Poor's says it’s most worried about the 6 mile taxing district around the arena which they’d hope to be growing at a faster rate.

The revenue from businesses is used to pay off that construction debt, but it is still behind the projections made when the arena was built.

S & P downgraded its outlook to negative on $340 million worth of Arena Authority bounds in which they are worried about their pay off.

S & P didn’t lower the overall credit rating, which is a positive. The credit service says the success of the Louisville basketball program, strong arena leadership and support from government kept them from lowering the rating on the arena.
 

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