Fitch turns Forward Air view to negative

Fitch Ratings said it changed the outlook for Forward Air Corp. (FRWD) and Clue Opco, LLC to negative from stable and affirmed the long-term issuer default ratings at BB-. The agency also affirmed Clue Opco's senior secured credit facilities and notes at BB/RR3.

“The negative outlook reflects Fitch's view that weaker performance, namely in FWRD's newly acquired Omni business, will delay deleveraging and heighten execution risks. Credit metric improvements to BB- thresholds are unlikely until late 2025 or 2026. Fitch forecasts EBITDA leverage will trend from high-4x in 2024 to low-to-mid 3x by 2026, while EBITDA coverage will rise from low in 2024 to low 3x by 2026,” the agency said in a press release.

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