Crain’s New York Business reports that the recent change in the Nets ownership structure required Mikhail Prokhorov to revise certain aspects of the team’s relationship to Barclays Center ... and that arena bondholders are not happy.
Crain’s reported that the big bond rating agency, Standards and Poor’s, “warned on Friday that it might downgrade the $527 million worth of bonds used to pay for Barclays’ construction in downtown Brooklyn. For now the bonds are rated “BBB-,” the lowest rung for investment grade. One step down would relegate them to junk status.”
Such a move could increase future interest rates for borrowing against the arena, which Prokhorov owns outright through Brooklyn Sports & Entertainment, his holding company.