S&P revises FTAI outlook to negative

S&P said it revised its outlook for FTAI Infrastructure Inc. (FIP) to negative from stable and affirmed the B- ratings on the company and its senior secured notes. The 3 recovery rating is unchanged, indicating meaningful (50%-70%; rounded estimate: 50%) recovery if a payment default occurs.

FIP plans to sell $100 million more in senior secured notes due in 2027. The company will use the proceeds to repay outstanding debt including at its unrated subsidiary, Transtar LLC.

“FIP's financial measures will remain elevated. We view the company's consolidated balance sheet as stretched, reflecting significant asset-level debt and a slower-than-expected ramp-up of capacity utilization and asset-level cash flow than previously forecasted. We now expect adjusted leverage to be around 13x in 2023 and about 10x in 2024 compared to our previous expectation of approximately 7.5x and 7x in 2023 and 2024, respectively. Forecasted measures are at the weaker end compared to similarly rated midstream peers,” S&P said in a press release.

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