http://www.nytimes.com/2014/12/23/arts/design/moodys-lowers-the-metropolitan-operas-credit-rating.html 2014-12-23 01:45:48 Moody’s Lowers the Metropolitan Opera’s Credit Rating The Met’s decision to once again use its Chagall murals as collateral for loans was one factor cited in the ratings downgrade, the latest evidence of the group’s financial travails. === The The ratings downgrade was the latest evidence of the financial travails of the Met, the nation’s largest performing arts organization: The company, which Moody’s cited But it also pointed to the fact that the Met was once again borrowing against its enormous Chagall murals — one called “The Triumph of Music,” the other “The Sources of Music” — which can be seen hanging behind the opera house’s familiar arched windows. The Met, which used the murals as Peter Gelb, the Met’s general manager, said in an interview that the Met was putting in place a plan to balance its budget and increase its endowment. “The long-term prospects for the Met, I believe, are good — because of the dramatic reduction in costs that have been achieved,” he said. The ratings agency listed the company’s strengths as its position in the arts world and the global reach of its transmissions to cinemas; the support of donors, who have given an average of $152 million a year recently; and the recent labor concessions, which will lead to lower costs. But Moody’s cited challenges including the organization’s history of deficits, its reliance on large gifts, its past difficulty increasing its endowment, and its pension obligations. “While the Met has developed a five-year plan to improve liquidity and move to operating equilibrium, that plan remains unproven and dependent on donor support for annual operations as well as endowment,” Moody’s said. Some of the Met’s biggest stars recently agreed to cut their fees to help the Met. This week, another cost-cutting measure was evident: It did not put up its Christmas tree.