Brightline Florida Cut Deeper Into Junk on Restructuring Risk

Thinning reserves and negative cash flows will likely lead Brightline Trains Florida LLC to restructure its debt within the next six months, according to S&P analysts who downgraded the struggling private rail line deeper into junk territory this week.

The ratings agency lowered the ratings on $2.2 billion of senior secured debt to CCC- from CCC and assigned a negative outlook. About $1.1 billion of those bonds are insured with an AA rating, based on Assured Guaranty’s credit grade.

The troubled railway is seeking ways to reduce its debt burden, but some analysts are concerned that its problems could ...