OTTAWA, August 13, 2019 – The Federal Bridge Corporation Limited (FBCL) is pleased to announce that Standard & Poor’s (S&P) Global Ratings has reaffirmed its 2019 FBCL bond rating with an ‘A+’ and a ‘stable’ outlook.
FBCL Chief Executive Officer, Natalie Kinloch, acknowledged that the affirmation of this strong rating is the result of continued robust efforts from all employees and said, “This is very positive news given the present state of uncertainty in global trade and international travel that directly impacts our operations and bottom line. Of late, the economic climate seems to be more volatile and less predictable, which makes business decisions increasingly more challenging. FBCL has implemented governance, management and performance measures that have positioned it well to withstand these conditions. As S&P recognizes, our ability to adapt to change and respond to financial risks is admirable.”
S&P concluded that despite the traffic volatility and increasing exposure to competition in the medium term, there are strong economic fundamentals in FBCL’s service area and the corporation has a low industry risk compared to other industries and sectors. S&P pointed out that FBCL benefits from a strong federal government link and that “FBCL’s very strong management and governance characteristics have allowed it to achieve financial and operational goals. We believe the management team has considerable expertise and experience and that it is adequately prepared to quickly react to unfavorable economic conditions. It proactively adjusts operating and capital spending to minimize the impact of traffic volatility on its financial profile and monitors performance against its budgets. Furthermore, management has policies and strategies to mitigate key risks, including debt management, cash and investment management, and a suite of insurance policies.”
S&P also noted that “the stable outlook reflects our expectation that, in the next two years, FBCL’s traffic and EBIDA will increase about 1.5% and 2.0% on average, respectively, and that the corporation will continue with its debt reduction strategy given its modest capital plan and lack of additional external financing needs.”
FBCL owns, manages and operates international bridges and associated structures in Sault Ste. Marie, Point Edward, Lansdowne (Thousand Islands) and Cornwall, Ontario. FBCL’s mandate is to provide the highest level of stewardship so that its international bridges and associated structures are safe and efficient for users.
For S&P’s announcement, please visit their site.