Significant geographic and format diversity; and Strong competitive position in the live entertainment industry. High debt leverage; Revenue volatility due to dependence on the timing of tours, theatrical productions, discretionary consumer and corporate spending; and Capital intensive business (high maintenance capital spending requirements). The rating on Live Nation reflects financial risk from a high lease-adjusted debt to EBITDA ratio; EBITDA levels subject to the success of concert schedules, talent costs, general economic environment, and soft attendance trends; and minimal potential for margin expansion. These factors are partially offset by the company's good competitive position in the live-entertainment industry, its significant geographic and format diversity, and historically positive discretionary cash flow. Business risk is a key rating concern. The live-entertainment industry
