OTTAWA, Aug. 12, 2022 (GLOBE NEWSWIRE) — The Federal Bridge Corporation Limited (FBCL) is pleased to announce that, S&P Global Ratings published its outlook for FBCL today, which has been affirmed at A+ and the outlook has been revised from negative to stable based on a few factors.
The S&P report cites that the improved rating were based on the findings that the Corporation’s ‘stable outlook reflects our expectation that in the next two years, the border reopening for passenger traffic between Canada and the U.S. will continue to bolster traffic levels and EBIDA. (Earnings before interest, depreciation and amortization).’
The report goes on further, ‘we also expect that the corporation will continue with its debt reduction strategy, given its modest capital plan and lack of additional external financing needs, which will help to stabilize coverage levels. We do not anticipate any change to our assessment of a high likelihood that the Canadian government would provide extraordinary support to the corporation in the event of financial distress during the outlook horizon.’
Among the strengths the S&P Global Ratings listed were the strong link with the federal government and the fact that commercial traffic has greatly improved to normal ranges and FBCL’s strong management team having considerable expertise and experience.
In response to the S&P Global Rating improved outlook, Natalie Kinloch, Chief Executive Officer, stated, “The Corporation continues to apply prudent fiscal management practices to its operations as commercial volumes have surpassed pre-pandemic times and passenger traffic levels are reaching only 50% of normal ranges. We are delighted that S&P Global Ratings have recognized the ongoing efforts of the FBCL Board of Directors, the management team and all FBCL employees in achieving today’s result considering the challenges of the worldwide pandemic. FBCL is proving on a daily basis that it can deliver on its mandate and scale operations no matter which socio-economic factors present themselves. We have proved that when the need arises to bolster bi-national trade capacity, FBCL meets the challenge.”
For further information contact:
Rémi Francoeur
Senior Communications Specialist
The Federal Bridge Corporation Limited
(613) 366-5074 x 114
rfrancoeur@federalbridge.ca