Bruce Ratner's plans for a new Brooklyn arena got a huge boost today when Moody's came in with an acceptable rating for $500 million in bonds.
Bruce Ratner's plans for a new Brooklyn arena for the New Jersey Nets got a huge boost today when Moody's came in with an acceptable rating for $500 million in bonds.
The rating from Moody's came in at Baa3, which is one step above junk. That may be enough to make the 18,000-seat, $1.06-billion arena a reality; anything above junk should be enough to reassure a jittery investment community to pony up backing for the bonds.
Cited by Moody's: the willingness of Ratner and partners to invest $424.2 million of their own money into the project; the desirability of New York City as a media market; and the financial backing of Russian billionaire Mikhail Prokhorov, who will own the Nets in the future. Drawbacks: an uncertain sponsorship and luxury-box climate.
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