S&P shifts Arc Infrastructure view to stable

S&P said it revised the outlook on Arc Infrastructure to stable from negative, reflecting the agency’s expectations of Arc keeping some financial headroom amid likely stable debt levels enabling it to endure unexpected business volatility.

“This is key to the company’s credit quality given Arc’s exposure to the volatile resource sector (in particular, iron ore), as well as grain harvests,” said S&P in a press release.

S&P said it sees Arc’s funds from operations improving to above 13% and that the company will be able to fund capital spending through internal cash flow.

The agency also affirmed Arc’s BBB rating.

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