Moody's drops Speedway outlook to negative

Moody's Investors Service said it changed Speedway Motorsports, Inc.'s outlook to negative from stable and downgraded the speculative-grade liquidity rating to SGL-4 from SGL-2.

The outlook change and SGL downgrade reflect the increased pressure on liquidity from the approach of the March 31, 2010 maturity of the company's $500 million revolver and Moody's expectation that a decline in admissions and other event-related revenue in 2009 will heighten the risk of a covenant violation.

The negative outlook additionally reflects Moody's concern that Speedway's downside cash vulnerability to a consumer-led recession is somewhat higher than anticipated previously for the Ba1 corporate family rating.

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