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S&P Global, a major ratings agency, has cut Cubic’s credit rating to CCC+, down from an already low B-, warning of an “onerous debt burden” for Cubic. The ratings agency it believes Cubic Corp.’s “capital structure is unsustainable in the long-term,” but thats an issue for Cubic’s debt holders, not its clients.
Cubic continues to be saddled with high debt. S&P said that as of last fiscal year, which ended in September, debt that Cubic directly holds was roughly $2 billion.
• Cubic
• S&P Global
• Fitch
• Moody’s
• SEPTA (Philadelphia)
• MBTA (Boston)
• MTA (New York)
• LA Metro (Los Angeles)
• CapMetro (Austin)
• Metro Transit (Minneapolis)
• Veritas Capital
• Elliott Investment
S&P Global, a major ratings agency, has downgraded Cubic Corp.’s credit rating to CCC+ from an already low B-, warning of an “onerous debt burden” for the company that includes Cubic Transportation Systems.
The primary analyst for the ratings change told Mobility Payments, however, that the increased risk that the downgrade signifies is longer-term in nature and concerns the company’s debt holders, not transit agency clients.
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