Gelb issues second appeal as Met’s bonds are declared junkmain
The general manager of the Metropolitan Opera sent out a second round of begging letters last night.
The reason soon became apparent as Bloomberg reported that the company’s credit rating has been cut to junk: The Metropolitan Opera has a $67 million line of credit backed by artwork and endowment funds. The organization had drawn $36.5 million as of July 31, 2018, according to its latest annual report.
A Met spokesperson said the comany had already raised $30m in its latest appeal.
‘While it is disappointing to receive this downgrade as a result of the severe economic implications of the coronavirus pandemic, which is affecting so many arts institutions, the Metropolitan Opera has nevertheless taken a number of immediate actions to stabilize its finances,’ Lee Abrahamian, a spokeswoman for the opera, said in an emailed statement.