S&P drops Speedway

Standard & Poor's said it lowered its corporate credit and issue-level ratings on Speedway Motorsports Inc. by one notch; the corporate credit rating was lowered to BB from BB+.

Concurrently, the agency said it removed the ratings from Creditwatch, where they were placed with negative implications June 18.

The outlook is stable.

According to S&P, the rating change is based on Speedway Motorsports' more aggressive financial policy, higher debt leverage, and its discomfort with the narrowing margin of compliance for the previous BB+ rating.

Over the past 12 months, Speedway Motorsports acquired New Hampshire International Speedway for $340 million in cash and has agreed to acquire the assets of Kentucky Speedway LLC for $78 million, the agency said, adding that when the acquisition of Kentucky Speedway is completed, which it expects before year-end, leverage will rise to 3.1x--above of its 3.0x target for a BB+ rating.

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