The ratings on Speedway Motorsports Inc. (Speedway) reflect its concentrated earnings profile and uncertainty regarding the earnings potential of its Kentucky Speedway acquisition. The company's good market position in the motorsports industry, higher barriers to entry, and consistent operating performance partially offset these factors. The CreditWatch listing is based on Speedway's more aggressive stance on financial policy and debt leverage, and our discomfort with its narrowing margin of covenant compliance for a 'BB+' rating. The Kentucky Speedway acquisition pushed the company's pro forma total debt to EBITDA to 3.2x, above our target of 3x for the current 'BB+' corporate credit rating. Speedway is the smaller of two major companies that host auto races sanctioned by the National Association of Stock
