Metropolitan Opera keeps “A” credit rating, but outlook downgraded

Posted on: November 25, 2019

“The Metropolitan Opera has run small deficits for the past two years and faces rising capital expenses—including for the repair of its white travertine exterior—prompting S & P Global Ratings to announce on Wednesday that it was keeping the company’s ‘A’ credit rating but revising its outlook to negative, from stable,” writes Michael Cooper in Wednesday’s (11/20) New York Times. “The Met recorded a $1.9 million deficit in 2018, and the company said it expected it to report a $1.1 million deficit on a budget of $312 million in the 2019 fiscal year…. Both recent deficits are small compared with the $22 million shortfall the Met incurred in 2014 [but] ‘in our view do not offset the weak available resources,’ the S & P report said.… The agency said that the Met’s strengths included its good reputation; active board; healthy annual fund-raising … and strong management. It praised the Met’s Live in HD cinema simulcasts for ‘significantly expanding its revenue base and audience.’ But … it called the Met’s endowment, valued at $284 million in 2018, ‘low for an organization of its scope’—and raised concerns about its reliance on large contributions to break even each year.”

Posted November 25, 2019