Tuesday, July 17, 2012
S&P Initiates Coverage On YRC Worldwide $400 Million ABL Facility With A ’1′ Recovery Rating
YRC Worldwide Inc. today announced that Standard & Poor’s Ratings Services has initiated coverage on the company’s asset-backed loan facility (the ABL Facility). The ABL Facility received a recovery rating of ’1′, the second highest recovery rating available, and a facility rating of B-. The ABL Facility rating is two notches above the YRC Worldwide corporate credit rating, the highest facility rating possible relative to the company’s corporate rating under S&P’s scoring methodology. S&P reaffirmed the company’s corporate credit rating of CCC with a stable outlook.
“The ABL Facility provides us the liquidity to grow and invest in our business as seasonal requirements necessitate. We believe the ’1′ rating of the receivables based facility is an indication of the credit worthiness of our customer base, the industry diversity of those customers, the structure of the facility and the overall high quality nature of the supporting collateral,” said Jamie Pierson, chief financial officer of YRC Worldwide. “Our liquidity position as of March 31, 2012 is the best it has been on a comparable quarter basis in three years, allowing us to continue executing on our strategy.”
“We continue to make great strides at YRCW as our newly optimized network at YRC Freight and corresponding decrease in standard transit times across much of the network is building on our commitment to improve service to our customers,” added Pierson. “And as usual, the regional companies continue to provide best-in-class service for their customers in the next-day and two-day industry segments.”