Moody's ups Vail Resorts outlook to positive

Moody's Investors Service said it affirmed all ratings of Vail Resorts Inc. and changed the outlook to positive from stable.

Affirmed ratings include the corporate family rating rated Ba3, probability of default rating rated Ba3 and $390 million of 6¾% guaranteed senior subordinated notes, due February 15, 2014, rated B1/75%/LGD5.

The Ba3 corporate family rating reflects Vail's high quality and well located resorts, strong brand names, significant competitive barriers to entry in the ski industry and low real estate development exposure, as well as improved operating performance, debt protection metrics and liquidity, the agency said.

However, the ratings also reflect the concentration of earnings, significant reliance on weather conditions and capital intensive nature of the ski industry, Moody's added.

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