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KBRA Affirms Ratings for Stadium Revenue Bonds of Metro Govt of Nashville and Davidson County Sports Authority

2 Jul 2026   |   New York

Contacts

KBRA affirms long-term ratings for the Sports Authority of the Metropolitan Government of Nashville and Davidson County Stadium Project Senior Revenue Bonds at AA-, Stadium Project Subordinate Revenue Bonds at A+, and Stadium Project Third Lien Revenue Bonds and Fourth Lien Revenue Bonds (Federally Taxable) at AA. The Outlook for all Bonds is Stable.

Key Credit Considerations

The ratings were affirmed because of the following key credit considerations:

Credit Positives

  • Enclosed stadium with modern amenities provides potential for significant revenue enhancement and sales tax collections, and opportunity for additional events not currently attracted to the existing stadium.
  • Diverse and growing economic base with significant tourism/convention activity has fueled pronounced HOT increases and demand for more hotel accommodations.
  • Authority contribution is capped, with no responsibility for construction cost overruns or maintenance of the completed facility; construction delays would have a very limited impact on pledged revenue generation.
  • FY 2025 pledged revenues along with non-tax revenues, only available for third and fourth lien bonds, currently provide adequate coverage of MADS for all Bonds.

Credit Challenges

  • The Bonds are secured by sources that are largely discretionary in nature and may be adversely affected by economic factors.
  • Amount of non-tax revenue backstop available may be dependent upon general economic activity and is subject to availability.

Rating Sensitivities

For Upgrade

  • Pledged revenue performance well in excess of current projections, resulting in substantially improved debt service coverage.

For Downgrade

  • Material decline in pledged revenues or non-tax revenues resulting in meaningful decline in debt service coverage.

To access ratings and relevant documents, click here.

Methodologies

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1015846