S&P rates J.B. Hunt Transport notes BBB+

Standard & Poor’s said it assigned its BBB+ issue-level rating to J.B. Hunt Transport Services Inc.’s proposed $350 million senior unsecured notes due 2022.

The company expects to use the proceeds from this issuance to repay some of its outstanding debt, including its existing $250 million 3.375% senior unsecured notes due September 2015 and a portion of the amount outstanding under its revolving credit agreement.

S&P’s existing ratings on J.B. Hunt Transport Services, including the BBB+ corporate credit rating and stable outlook on the company, remain unchanged.

S&P said its ratings on J.B. Hunt reflect the company’s solid market position as one of the largest domestic road and rail intermodal service providers (based on fleet size), as well as the sustained improvements in rail service and the relative fuel efficiency of intermodal transport, which have benefited this segment.

These positive attributes are partially offset by the company’s participation in the trucking industry, which is highly competitive, cyclical and capital intensive, the agency said.

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