The ratings on Beverly Hills, Calif.-based Live Nation Inc. reflect the company's high debt leverage, low EBITDA margins, negative discretionary cash flow, and volatile operating performance. Profitability is subject to the success of concert schedules and attendance trends, as well as the company's in-house ticketing initiative and its strategic goal to expand the range of services provided to music artists. The company's strong competitive position in the live-entertainment industry; significant geographic, venue, and format diversity; and artist relationships partially offset these factors. Since its spin-off from Clear Channel Communications Inc. in late 2005, Live Nation has been acquiring strategic assets, shedding nonstrategic businesses, and reevaluating elements of its amphitheater and theater portfolio. The company is concentrating on boosting nonticket ancillary
