Tuesday, January 12, 2010

Standard & Poor’s raises YRC Worldwide credit rating after debt-for-equity swap

YRC Worldwide Inc. is seeing additional benefit from the recent completion of a debt-for-equity swap, with Standard & Poor’s declaring the company no longer in default.

The rating service said in a Monday release that it raised its corporate credit rating of YRC to “CCC-” from “SD,” or “selective default.” The new rating still is considered a junk rating.

It also said it raised its rating of remaining notes subject to the exchange offer to “CC” from “D” and assigned them a recovery rating of 6, meaning bondholders would have a 10 percent or lower chance of recovering their principal in the event of payment default. Full Story......

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