S&P: Macquarie Infrastructure on developing watch

Standard & Poor’s said it placed the BBB- corporate credit and senior unsecured debt ratings on Macquarie Infrastructure Co. LLC on CreditWatch with developing implications.

The CreditWatch placement reflects an expectation that Macquarie will likely soon close the acquisition of Bayonne Energy Center LLC for $720 million.

The agency said it expects to resolve the CreditWatch once it analyzes the pro forma impact on the company’s business and financial risk profiles.

S&P said it believes the acquisition will increase Macquarie’s contractual cash flows, but also exposes the company to volatile merchant cash flows.

The company’s ratings reflects Macquarie’s modestly diverse portfolio of capital-intensive infrastructure businesses with long-lived assets, S&P said.

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