Brightline rail service bonds get noninvestment grade

By: Miami Today

The startup luxury Brightline rail service that is now expected to link Miami with West Palm Beach by the end of March 2018 has received a non-investment grade rating on about $600 million in revenue bonds that are to be issued by the Florida Development Finance Corp. on behalf of the line’s owners.

Fitch Ratings, which was hired by owner All Aboard Florida-Operations to rate the bonds, last week initially rated the bonds BB-, contingent on the final pricing of the bonds.

Fitch said the bonds’ relatively low grade “reflects Brightline’s standing as a new-market, US luxury rail project that exhibits uncertain demand and revenue generation potential.” The service also pointed to the uncertain nature of the market’s “willingness to pay” for the luxury rail as opposed to use of passenger cars…