WEST PALM BEACH, Fla. — Ridership and financial figures from Brightline's two corporations led to a downgrade in bond ratings from Fitch Ratings, a worldwide financial and credit rating service.
I reviewed Fitch's Brightline report, and to put it in layman's terms, Brightline had more riders and generated more revenue in 2024 than in any other year.
WATCH BELOW: Brightline's bond rating downgraded
The problem is, according to Fitch, Brightline's ridership and revenues were less than Brightline had forecast, and the rail service is still losing money.
As a result, the rating agency downgraded more than three billion dollars in bonds, declaring what it called a "Negative Watch."
Fitch said it's the result of a slower-than-expected growth of ridership, lower ticket fares, higher-than-expected operating costs, and depleted cash reserves.
The lower rating means Fitch and other Wall Street agencies are casting doubt on Brightline's ability to maintain and grow its rail service and pay off its short-term debts.
I reached out to Brightline to get the rail service's side of the story and how the lower ratings might affect the future of its service in South Florida.
The company has not returned my request for a comment.
