Finance fears: Met’s debt may be downgradedmain
Bloomberg reports that the US largest performing arts company is ‘under review for a downgrade’.
Moody’s, which rates the Met’s $100 million of debt A3, seventh-highest, said the review “reflects softening in earned and gift revenue,” according to a report by analyst Dennis Gephardt.
“Management at the Met has disclosed that operating performance weakened significantly in the fiscal year 2014 on the heels of a $2.8 million deficit in FY 2013,” Gephardt said today in the report.
The result will be known before the end of 2014.
The Met’s endowment is shrinking – down to $253 million – and it needs to borrow money from time to time. If its debt is downgraded, that will become difficult and expensive.