CHICAGO — The Minnesota Orchestral Association's low investment grade credit has stabilized as the organization recovers from its past lockout, Standard & Poor's said.
The rating agency on Dec. 17 affirmed the association's BBB-minus underlying rating on its taxable 2005 issue and revised its outlook to stable from negative.
"The return to a stable outlook reflects our view of the end of a musician lockout that began in October 2012 and the association's corresponding return to concert activity in February 2014," said Standard & Poor's analyst Jessica Wood. The association cancelled all of the Minnesota Orchestra's 2012-2013 season.
"Given management's expected 2014 operating results and anticipated fiscal 2015 results pending a full concert season, we see signs of stabilization and less uncertainty than when we reviewed the rating in fall 2013," Wood added.
The MOA's bonds are a general unsecured obligation structured in a fixed-rate with a 10-year bullet maturity next April.
The association was founded in 1903. It serves as the governing body of the orchestra and owns and operates Orchestra Hall in the heart of the Minneapolis business district. The hall is known for its excellent acoustics, and it is located adjacent to a public plaza used for summer festivals, Standard & Poor's said.
