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3 ratings agencies weigh in on Patriot Rail’s finances amid debt structure change

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Three ratings on same issue and company at the same issue is unusual.

The debt issue in question is a $440 million offering to pay down existing debt, pay a dividend to shareholders and cover transaction fees.

Fitch gave a notably higher rating of BB , three notches above the B2 rating from Moody’s .

“We view Patriot ’s business as stronger than before due to its increased size, reduced customer concentration, and expansion into new industries,” the agency wrote. “Since being acquired by its current sponsor Igneo, Patriot has exited its relatively low-margin port business, doubled its rail freight operations through acquisitions and some organic expansion, and diversified into adjacent markets like warehousing and transloading and excursion railroad operations.” The post 3 ratings agencies weigh in on Patriot Rail’s finances amid debt structure change appeared first on FreightWaves ..