The ratings reflect Vail Resorts Inc.'s limited geographic diversity, high capital expenditures, and risks associated with a highly seasonal and cyclical industry. This is offset by solid operating performance, a dominant market share in Colorado, and good revenue mix. Vail, Colo.-based Vail Resorts had $520.3 million of debt outstanding on June 30, 2003. Vail operates five ski resorts, as well as the Grand Teton Lodge Co. in Jackson Hole, Wyo., and various lodging properties mostly near its ski resorts. The acquisitions of Heavenly Valley Ski Resort at Lake Tahoe, Calif., and the RockResorts chain in 2001 modestly improved the company's geographic diversity. Heavenly is the company's first ski resort outside the Colorado market. However, the expansion into luxury hotel properties
