The ratings on Live Nation Inc. reflect financial risk from a high lease-adjusted debt to EBITDA ratio; EBITDA levels subject to general economic trends, levels of consumer and corporate discretionary spending, talent costs, and the success of concert schedules; volatile attendance trends; and very limited potential for significant EBITDA margin expansion from low current levels. The company's strong competitive position in the live-entertainment industry, its significant geographic, venue, and format diversity, and its relationship with over 1,300 artists only partially offset these factors. Since its spin-off from Clear Channel Communications Inc. in late 2005, Live Nation has been in transition. It has been acquiring strategic assets, shedding nonstrategic businesses, and reevaluating elements of its amphitheater and theater portfolio. Live Nation
