The ratings reflect Vail, Colo.-based Vail Resorts Inc.'s limited geographic diversity, high capital expenditures, and risks associated with a highly seasonal and cyclical industry. This is only partly offset by solid operating performance, a dominant market share in Colorado, and a good product revenue mix. The ski resort industry's escalating cost of capital improvements and infrastructure has induced a wave of consolidation. The number of ski resorts in the U.S. is the lowest in nearly 20 years because of consolidation and resort closures; however, the industry remains highly fragmented and competitive. Consolidation likely will continue and the company is expected to acquire additional ski resorts as opportunities arise. Vail Resorts and its principal competitor, Intrawest Corp., are the two major
