S&P rates FTAI Infrastructure, notes B-

S&P said it assigned B- ratings to FTAI Infrastructure Inc. and its $500 million of senior secured notes. The recovery rating on the notes is 3, indicating meaningful (50%-70%; rounded estimate: 50%) recovery if a default occurs. S&P also assigned a stable outlook.

Parent Fortress Transportation and Infrastructure Investors LLC spun off FTAI on June 27.

“We view FTAI's financial risk profile as highly leveraged. We view the company's consolidated balance sheet as stretched, reflecting significant asset level debt and a slow ramp up of capacity utilization and asset-level cash flow. In our analysis, we've discounted 2022 as it is only a partial pro forma year, however, consolidated credit measures reflect substantial group financial leverage,” the agency said in a press release.

The outlook reflects the view that FTAI will have consolidated leverage of about 12x in 2022 and move towards mid-7x as its operating assets ramp up, S&P said.

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