Win the pennant and your ballpark's bonds emerge from junk.
Moody's Investors Service conveyed that message to the New York Mets Wednesday in upgrading the rating of their ballpark's bonds to investment-grade Baa3 from Ba1, affecting roughly $650 million of debt for holding company Queens Ballpark LLC.
The outlook is stable.
"The upgrade and investment grade rating also reflects the stadium's evidenced revenue resiliency which notably rebounded in 2015, when the team made its first World Series appearance since 2000, and is expected to remain strong in the near term," Moody's said in a statement. "The rating also recognizes the inherent variability of the team's performance that could directly affect cash flows over the long debt term.
The Mets won the 2015 National League championship before losing to the Kansas City Royals in the World Series.
Regular-season attendance at Citi Field last year rose 20%. The Mets drew 2,569,753 fans, averaging 31,725 over 81 home games.
According to a report late last year by the New York City Economic Development Corp., the Mets' appearance in two National League playoff rounds plus the World Series - totaling seven home games -- helped generate $81.2 million for the city's economy.
The New York City Industrial Development Agency issued bonds in 2006 to pay for the construction of Citi Field, which opened in 2009. The recession, team's previously poor performance, regional competition for premium seating and exposure to the Bernard Madoff scandal had all affected the team's finances and helped push the rating downward.
