Yellow | S&P drops YRC Worldwide’s credit rating to ‘selective default’
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It's About The Borders - Idiot
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You shouldn't be so hard on R-14, he was only posting an article from The Kansas City Business Journal. Like they say, don't blame the messenger for the message.
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I chose to pay the fuel bill before the tire bill.
That makes sense. Tires stay up for a while with cords showing. Out of fuel trucks don't roll easily. But if they stop paying the drivers, the trucks won't run at all....
NEW YORK (AP) -- Ratings agency Standard & Poor's has cut its long-term corporate credit rating for trucking company YRC Worldwide Inc.
S&P said in a statement Wednesday that the company's rating was cut from "CC" to "SD," which stands for selective default.
A selective default rating means that a company has failed to pay one or more of its financial obligations when they came due. "CC" means a company is highly vulnerable, according to S&P.
Analyst Anita Ogbara wrote in a note to investors that the Overland Park, Kan.-based YRC completed a financial restructuring by exchanging a portion of its secured debt and other obligations for equity. "We view this as a distressed exchange and thus a default," she wrote.
YRC issued $100 million in new convertible notes and replaced its existing asset-backed securitization facility with a new three-year, $400 million asset-backed loan, Ogbara wrote. Maturity dates on a credit agreement and pension payments were deferred until March 2015, she wrote. The pension payments had been deferred previously, the note said.
YRC earlier this month said it had secured commitments for the asset-based loan facility. It was considered a key step in the company's effort to improve its liquidity.
Messages seeking comment were left for a YRC spokeswoman.
Shares of YRC closed Wednesday unchanged at 98 cents
S&P said in a statement Wednesday that the company's rating was cut from "CC" to "SD," which stands for selective default.
A selective default rating means that a company has failed to pay one or more of its financial obligations when they came due. "CC" means a company is highly vulnerable, according to S&P.
Analyst Anita Ogbara wrote in a note to investors that the Overland Park, Kan.-based YRC completed a financial restructuring by exchanging a portion of its secured debt and other obligations for equity. "We view this as a distressed exchange and thus a default," she wrote.
YRC issued $100 million in new convertible notes and replaced its existing asset-backed securitization facility with a new three-year, $400 million asset-backed loan, Ogbara wrote. Maturity dates on a credit agreement and pension payments were deferred until March 2015, she wrote. The pension payments had been deferred previously, the note said.
YRC earlier this month said it had secured commitments for the asset-based loan facility. It was considered a key step in the company's effort to improve its liquidity.
Messages seeking comment were left for a YRC spokeswoman.
Shares of YRC closed Wednesday unchanged at 98 cents