Brightline Florida Downgraded on Growing Restructuring Risk

Brightline Trains Florida LLC, the struggling private rail line connecting Orlando to Miami, was downgraded deeper into junk by S&P Global Ratings after the rating company forecast a higher probability of a debt restructuring in about six months.

• S&P lowered the unenhanced and underlying ratings on $2.2 billion of senior secured debt to CCC- from CCC and assigned a negative outlook to the debt
  • About $1.1 billion of those bonds are insured with an AA rating, based on Assured Guaranty’s credit grade
• Brightline had a sharper-than-forecast decline in reserves of $35 million in part due to unanticipated train ...