Our 'BB' rating on Vail Resorts Inc. is derived from: Our anchor of 'bb', based on our "fair" business risk and "significant" financial risk profile assessments for the company. Modifiers had no impact on the rating outcome. Vulnerability to adverse weather conditions and economic cyclicality. Seasonality in ski operations, the largest contributor to consolidated EBITDA. Exposure to real estate development risk. Strong market position in the U.S. ski industry. High barriers to entry in the mountain resort industry. Expected adjusted leverage in the low- to mid-3x area over the intermediate term. Volatility in cash flows, driven by development in the real estate segment. The stable outlook on Vail Resorts Inc. (Vail) reflects our belief that Vail's adjusted leverage will remain
