Macquarie Infrastructure Corporation (NYSE:MIC) notes that S&P Global Ratings (S&P) today downgraded MICs Issuer Credit Rating to BB+ / Stable from BBB- / Negative Outlook. S&P simultaneously downgraded MICs International-Matex Tank Terminals (IMTT) subsidiary to reflect the change in the parent rating.
Christopher Frost, Chief Executive Officer of MIC, made the following statement:
The successful sales of the Bayonne Energy Center and other, smaller businesses in 2018, together with the pending sales of our portfolio of wind and solar power generation businesses, have sharpened our strategic focus and strengthened our balance sheet although modestly reduced the diversity of our cash flows. Taken together with the decreased contribution from IMTT while repurposing and repositioning investments continue, S&P has concluded that MIC should be rated under S&P’s corporate methodology and that a one-notch downgrade is appropriate.
As previously noted, we do not expect the ratings revision or change in ratings methodology to have any material impact on our interest expense or our financial condition. We have ample liquidity with which to fund our commitments, including our dividend, and expect to maintain our ratio of net debt to EBITDA in a range of between 4- and 4.25-times in 2019. Importantly, the majority of our debt facilities do not require refinancing before 2025.
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MIC owns and operates a diversified group of businesses providing basic services to customers in the United States. Its businesses consist of a bulk liquid terminals business, International-Matex Tank Terminals, an airport services business, Atlantic Aviation, and entities comprising an energy services, production and distribution segment, MIC Hawaii. For additional information, please visit the MIC website at www.macquarie.com/mic.
MIC is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of MIC do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of MIC.
Jay A. Davis