Brightline Trains Florida, the private passenger railroad between Miami and Orlando, had $2.2 billion of its municipal debt downgraded to junk by Fitch Ratings, as it burns cash to offset lower-than-expected ridership and higher costs.
The private rail line backed by Fortress Investment Group carried 2.8 million riders in 2024, or 30% below the most conservative scenario projected in the railroad’s bond offering documents. Liquidity declined to $310 million as of the first quarter from $559 million in May 2024, according to Fitch.
The credit grader cut Brightline’s $2.2 billion of senior secured private activity bonds one level to ...
