Moody's drops Speedway to SGL-3

Moody's Investors Service said it downgraded Speedway Motorsports, Inc.'s speculative-grade liquidity rating to SGL-3 from SGL-2.

The downgrade reflects Moody's expectation that Speedway will have diminished headroom under its financial maintenance covenants due to tightening of the covenant levels during 2010 and continued softness in discretionary consumer and sponsor spending on motorsports events, the agency said.

Speedway's Ba1 corporate family rating and stable outlook are not affected, Moody's said, noting that loss given default point estimates were updated to reflect the current debt mix.

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