Citing what it deems to be effective efforts to counteract the overall decline of horseracing in California, Fitch Ratings Wednesday revised the outlook to stable from negative on the Del Mar Race Track Authority’s BBB-minus revenue bonds.
The action affects $39 million of outstanding debt issued for the famous Del Mar track in coastal San Diego County.
The outlook revision, according to Fitch, in part reflects adaptations made by the California horseracing industry, which reduced the number of racing days in 2009, resulting in increased attendance and betting on days when races were run.
The Del Mar management also effectively worked to control expenses and improve non-betting revenue at the track, Fitch said.
The track’s debt includes structural protections in the indenture to assist in countering the long-term attendance declines for California horseracing, which has come under increasing pressure from alternative gambling venues, such as tribal casinos, the rating agency said.
It cited credit strengths that include the track’s long history and prominence, a lack of expected additional borrowing, and management’s record of proactively controlling expenses.
