Moody’s rates FTAI, notes Ba2

Moody's Investors Service said it assigned a Ba2 corporate family rating to FTAI Aviation Ltd., the parent company of Fortress Transportation and Infrastructure Investors LLC. The agency also assigned a Ba2 rating to FTAI Aviation's new $500 million in notes. The outlook is negative.

Moody's withdrew the Ba2 CFR previously assigned to Fortress Transportation and Infrastructure.

These actions reflect the November 2022 restructuring that occurred after the closing of the spinoff of the infrastructure assets. In the restructuring, Fortress Transportation and Infrastructure became a subsidiary of FTAI Aviation, and FTAI Aviation became a guaranteeing parent, Moody’s said.

The Ba2 ratings on the existing senior unsecured notes and preferred stock issued by Fortress Transportation and Infrastructure Investors, including the new $500 million of backed senior unsecured notes issued in November 2023, remain unchanged.

The proceeds from the new notes will be used to pay down Fortress Transportation and Infrastructure Investors' revolving credit facility, which had $250 million outstanding as of Sept. 30, and for other general corporate purposes. Once the revolving facility is paid in full, the company's liquidity will consist of full availability under its $300 million revolving facility, which is due September 2025, and a cash balance of $52.9 million. Moody's said it expects the rest will be used for “asset purchases, consistent with the company's strategy, although the cash balance may temporarily rise as the company executes transactions over time.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.