Wednesday, December 19, 2007
Mitchell Report doesn't affect Major League Baseball's credit rating
NEW YORK -- Fitch Ratings said Wednesday it was affirming
the "A" rating it assigned to the Major League Baseball Trust,
which it said consists of a $978 million variable funding note and
a $389 million term note.
The statement followed the release of the report by George
Mitchell last week in which the former Maine senator made
recommendations regarding the widespread use of steroids and other
performance-enhancing drugs in professional baseball.
The notes in the trust are secured by the baseball league's
centralized broadcast contracts and other shared revenue.
Investors use credit ratings to determine the likelihood of
getting their money back under the terms they loaned it.
"Fitch's affirmation reflects continued trust performance
within expectations as broadcast agreements with FOX Broadcasting
Company, Turner Broadcasting System, and ESPN provide contractual
revenue through the 2013 season," the ratings company said.
"Fitch does not expect that reaction to the recently released
Mitchell Report will have any meaningful or long term impact on the
trust revenues that secure the notes issued by MLB Trust."
The company's "A" rating is the second-lowest investment-grade