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 is an artist-driven business and is highly sensitive to shifting public tastes, levels of consumer and corporate discretionary spending, touring schedules, and the potential for lower attendance at amphitheaters because of weather conditions. The first half of 2006 has seen slightly improved ticket
