- Alpha Group News
- 10. October 2022
- Alpha Trains
Resilient and stable:
Alpha Trains‘ investment-grade rating affirmed with stable outlook
Following the annual review meeting and considering a planned refinancing, Fitch Ratings has reaffirmed Alpha Trains’ BBB senior debt rating (Senior secured debt rating of Alpha Trains Finance S.A.) and BBB- IDR (Long-Term Issuer Default Rating of Alpha Trains Holdco II S.a r.l.) with a stable outlook.
According to Fitch Ratings, the rating reflects Alpha Trains’ established market position in the European rail leasing sector, with a young asset portfolio, strong utilisation rates and stable earnings through the cycle. Fitch expects the impact of rising interest rates on AT’s earnings to be manageable owing to its long-term leases with matching fixed-rate funding. Fitch also commented on Alpha Trains’ proactive management and the German Regulatory framework which largely mitigated pandemic related pressures and that releasing risk has been managed well with the company reporting consistently strong utilisation rates close to 100%.