The corporate credit rating on Charlotte, N.C.-based Speedway Motorsports (SMI) reflects Standard&Poor's Ratings Services' assessment of the company's business risk profile as "fair" and our assessment of the company's financial risk profile as "significant," according to our criteria. Our assessment of SMI's business risk profile as fair reflects its reliance on an event-driven business model, the susceptibility of much of its revenue base to the economic cycle, and the existence of substitute entertainment events. Partially offsetting these risks are the company's strong EBITDA margin, good market position in the motorsports industry, and high barriers to entry stemming from significant capital costs for new racetracks, long construction lead times, and a limited supply of high-margin NASCAR racing dates. SMI's
