It's been awhile since we've posted an Update, lots happening! In yesterday's joint meeting of the Del Mar Race Track Authority and State Race Track Leasing Commission, Fitch's 2025 Rating of the 2015 Race Track Authority Bond Series was provided, which continues and reinforces a gloomy outlook for the horse racing industry. PLEASE Share this Important News with others and encourage them to Sign this Petition to Add 10 More Days of the San Diego County Fair to Replace 47 Days of Del Mar Horse Races! The momentum is building for this!
In April 2020, Fitch Ratings, one of the big three debt rating agencies, lowered its rating on the Del Mar Race Track Authority’s $39.9 million in revenue bonds issued in 2015 from BBB minus to BB minus, and has kept it there since.
As reported by the San Diego Union Tribune, “By lowering its rating one notch, Fitch dropped the debt from investment grade to more speculative non-investment grade.”
According to Capital.com, bonds rated BB minus like the RTA’s "are non-investment grade, which suggests a relatively high credit risk. It signifies that the borrower's ability to meet its financial obligations is considered to be speculative or "junk”. ...A BB minus rating indicates a higher credit risk compared to a BB rating. Borrowers with a BB minus rating have a somewhat weaker ability to meet their financial commitments, and they are more vulnerable to adverse economic conditions or changes in circumstances.”
https://capital.com/en-eu/learn/glossary/bb-credit-rating-definition
It is significant that Fitch downgraded the RTA’s bonds to junk status at the outset of the COVID lockdown, but has not changed that rating since, noting in its 2025 Rating: "Declines in the California horse racing, as well as exposure to adverse events such as equine deaths at tracks, have driven a long-term trend of reduced attendance and uncertainty in fan support, despite temporary improvements during the pandemic." And, "Fitch cases reflect declining horse-racing trends and thin operating margins on net racetrack revenue.This leads to higher reliance on net concession revenue, which also is vulnerable to deterioration. Under Fitch's rating case, net racetrack revenue is depleted by 2028". https://www.fitchratings.com/research/infrastructure-project-finance/fitch-affirms-del-mar-race-track-authority-bonds-at-bb-outlook-stable-21-11-2025