Finance fears: Met’s debt may be downgraded

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.

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  • The Met’s board is supposed to embark on a plan to double the endowment now that its union contracts have been settled. Let’s hope the board keeps their word.

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