...June 6, 2023 We now expect weaker macroeconomic condition in 2023 to affect Stonepeak Taurus Lower Holdings LLC's (TRAC) operating performance more significantly than previously. The company benefitted from a favorable environment for chassis leasing in 2021 and 2022 with extraordinary import levels and chassis shortages. However, weaker macroeconomic conditions and lower consumer demand for goods are leading to declining import level in 2023. Supply chain disruptions have also eased significantly during the year, resulting in lower demand for chassis, affecting TRAC's utilization rates and pricing to customers. We anticipate U.S. container imports to improve somewhat in 2H 2023, leading to higher utilization rate for TRAC in comparison to 1H 2023. Consequently, we now expect revenues to decline by around 30% in 2023, after growing over 10% in 2022 and over 45% in 2021. We forecast credit metrics to weaken more than previously expected but remain commensurate with our ratings. In 2022,...
