S&P: RailAmerica on watch

Standard & Poor's said it placed its ratings, including the BB- corporate credit rating, on RailAmerica Inc. on CreditWatch with negative implications.

The rating action follows the announcement that RailAmerica has reached a definitive merger agreement with an affiliate of Fortress Investment Group LLC, the agency noted, adding that the total value of the transaction, including the refinancing of RailAmerica's existing debt, is $1.1 billion.

The agency said that should the corporate credit rating remain outstanding, it will evaluate the post-transaction financial profile of the company as well as the strategic and financial policies of the new owners and would likely lower the rating if it appears that financial measures will weaken materially from current levels.

© 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.