S&P lifts Ryder System

S&P said it raised its ratings for Ryder System Inc. and its senior unsecured debt to BBB+ from BBB.

“We expect Ryder's operating performance through 2024 to normalize somewhat from peak levels in 2022 but remain very strong. Ryder's performance in 2022 (particularly in the first half) benefitted from strong demand for truck transportation and generally favorable macroeconomic conditions. Production problems related to supply chain disruptions also contributed to limited availability of new vehicles for truck operators. These factors supported strong performance across Ryder's business lines (beginning 2021),” S&P said in a press release.

The agency said it estimates Ryder’s EBIT interest coverage in the 3x-3.5x range through 2024 compared with 5.8x in 2022 and funds from operations to debt in the 30%-35% range through 2024 compared with 36.8% in 2022.

The outlook is stable.

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