BRADENTON, Fla. – Bonds that financed Louisville, Ky.’s KFC Yum! Center sports arena dropped farther into junk territory when Moody’s Investors Service downgraded the senior lien bonds to Ba3 from Ba2.

Moody’s said there have been recent positive changes to improve revenues but the changes would not result in a “drastically higher operating margin” for the Louisville Arena Authority. Debt service coverage narrowed to 1.06 times in fiscal 2013.

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