""We think that switching riders from alternate modes, automotive in particular, is more challenging than originally forecast," S&P Global Ratings said in its most recent note on Brightline's financial state this month. "Fares that have been drastically discounted to encourage new riders have proven particularly sticky, and we believe that [the rail line's] projected growth in ticket revenue into 2026 is unlikely to materialize." S&P Global said it cut ratings of the railroad's guaranteed $2.219 billion senior secured debt to 'CCC' from 'BB-', while downgrading $1.1 billion of corporate notes by the parent company, Brightline East, to CCC from CCC+."
""Looking ahead, we now project lower growth in ticket revenue of 15% in our base case in 2026, leading us to expect a higher probability of default by January 2027 for [the railroad] as liquidity available would be insufficient to meet debt service obligations," the agency added."
Brightline is pursuing ways to raise $100 million for operations and has listed its seven-story Fort Lauderdale parking garage for sale. November ridership and revenues showed improvement but remain inadequate to meet mounting cash needs for debt service and daily operations. S&P Global Ratings said switching riders from cars is more challenging than forecast and that deeply discounted fares have proven sticky, reducing expected ticket revenue growth. S&P cut the railroad's $2.219 billion senior secured debt rating to 'CCC' and downgraded $1.1 billion of parent company notes, warning of a higher probability of default by January 2027.
Read at Sun Sentinel
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