The 'BB-' corporate credit rating on Vail, Colo.-based Vail Resorts Inc. reflects Standard&Poor's Ratings Services' expectation that operating performance will improve slightly in the fiscal year ended July 31, 2011, reflecting the modest recovery in consumer travel and leisure spending during the 2010-2011 ski season and closings on the company's two real estate projects. We expect credit measures to modestly improve in fiscal 2011, based on improving profitability and the resumption of positive discretionary cash flow. Vail's business risk profile is weak, owing to its weather dependence, geographic concentration, and cyclicality. The company's quality ski resort assets and dominant market share in Colorado are positive factors that do not offset these risks. Vail Resorts owns and operates five
