Citi Downgrades Macquarie Infrastructure Company Trust (MIC) to Hold

November 13, 2008 8:06 AM EST

Citi downgrades Macquarie Infrastructure Company Trust (NYSE: MIC) from Buy to Hold. Price target lowered from $26 to $4.

Citi analyst says, "Dividend Cut Is An Effort To Store Cash & Shore Up Finances – At first glance, we viewed the cut as a preventative measure to raise liquidity in general. On closer inspection, we believe dividend was cut in an effort to shore up the company’s financials and address a near term debt tranche. In 2009, the company has a $200 million ring-fenced debt tranche (airport parking segment) coming due. We believe the dividend cut is an effort to strengthen the company’s efforts to refinance that tranche; airport parking assets may be contributed to the debt collateral pool in an effort to shore up finances. We believe further dividend cuts to shore up finances are a possibility."

Macquarie Infrastructure Co LLC, formerly Macquarie Infrastructure Company Trust, (Macquarie Infrastructure Company) owns, operates and invests in a diversified group of infrastructure businesses primarily in the United States.

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