Fitch Comments on NRG Stadium Bonds, Market briefs

In Houston, Fitch Ratings issued a “stable” outlook for the $62.9 million in county bonds issued for the construction of the Houston’s NRG Stadium, where Super Bowl will be played in February 2017.

NRG Stadium, a 1.9 million SF structure with seating capacity of 71,500, was completed in 2002. The NFL’s Houston Texans and the Houston Livestock Show and Rodeo are the key tenants.

Fitch reported the Texans paid attendance was over 98 percent of capacity last year. However, Rodeo attendance declined 1 percent to 2.5 million in 2016 as revenues were basically unchanged at $133.4 million.

“The stadium is a moderately-used facility which retains high flexibility to fund rehabilitation and capital improvements to meet fan and corporate demands,” Fitch reported. “Both tenants collaborate with each other and the landlord, Harris County Sports and Convention Corporation, on capital investment and are required to set aside $2.5 million annually into capital and maintenance accounts which ensures minimum reinvestment.”

Fitch placed a “BBB” rating on the stadium bonds.