The 'BB' rating on Speedway Motorsports Inc. reflects 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, high barriers to entry, and good credit measures despite recent operating volatility are positives. The rating outlook is negative. Speedway Motorsports is the smaller of two major companies that host auto races sanctioned by NASCAR. The same family that controls NASCAR also controls Rival International Speedway Corp. High-margin broadcasting and sponsorship contracts account for the majority of Speedway Motorsports' EBITDA and represent stabilizing factors for revenues and EBITDA. For the quarter ended June 30, 2009, revenues and EBITDA decreased 9.8% and 18.6%, respectively. The decline was because of
