The corporate credit rating on Broomfield, Colo.-based Vail Resorts Inc. reflects Standard&Poor's Ratings Services' assessment of Vail's business risk profile as fair, because of its strong market position in the U.S. ski industry and high barriers to entry, offset by its vulnerability to economic cyclicality and weather conditions and the risks inherent in its real estate segment. The rating also reflects our assessment of Vail's financial risk profile as significant, because of the volatility in cash flows from the real estate segment, and our belief that the company could maintain adjusted leverage in the mid-3x area over the long run, given the financial policy of the company. This is despite the fact that adjusted leverage is currently below
