Moody’s shifts YRC view to stable

Moody’s Investors Service said it revised the outlook for YRC Worldwide Inc. to stable from under review and confirmed the company’s ratings, including the Caa1 corporate family and B1 senior secured ratings. Moody’s raised the speculative grade liquidity rating to SGL-3 from SGL-4.

The outlook revision and ratings confirmation follow YRC’s announcement the U.S. Department of Treasury plans to provide the company with a $700 million loan under the CARES Act, Moody’s said.

After Moody’s standard adjustments, YRC’s total debt will increase by about 25% once all of the available funds under the loan are borrowed, the agency said. Moody’s forecasts debt/EBITDA will be elevated in the near-term, before reverting to about seven times in 2021.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.