S&P drops Yellow to D

S&P said it downgraded its ratings for Yellow Corp. and its senior secured term loan to D from CC.

“The downgrade and withdrawal reflect Yellow's bankruptcy filing. Yellow has publicly stated that it intends to wind down operations and pursued a debtor-in-possession (DIP) facility to bolster its liquidity as it markets its assets for sale. It will use the liquidity to honor certain obligations that arose prior to the filing, including salaries, benefits, and taxes, among other expenses.

“Our updated recovery analysis does not incorporate the DIP loan or related fees beyond our standard 5% administrative expense assumption. We withdrew our ratings because the company has ceased operations and will liquidate its assets,” S&P said in a press release.

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