Fitch rates NBA notes A-

Fitch Ratings said it assigned an A- rating to the National Basketball Association’s (NBA) $50 million seven-year senior notes, consisting of $25 million series 2011 J notes and $25 million series 2011 K notes.

The notes were privately placed through NBA’s affiliate, Hardwood Funding, LLC.

Fitch also said it affirmed the NBA’s outstanding $2.3 billion senior notes issued by Hardwood Funding at A-.

The outlook is stable.

The ratings reflect the underlying core economic model of the NBA, which is based on a solid revenue sharing mechanism and a collective bargaining agreement that fosters competitive balance through its soft salary cap, the agency said.

The league’s recent strong attendance record through uncertain economic times in the United States, solid viewership and formidable international growth are additional supporting factors driving the rating, Fitch said.

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