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CHICAGO, Jan 14, 2009 (BUSINESS WIRE) -- Fitch Ratings has assigned a rating of 'BBB' to FedEx Corporation's (FDX:fedex corp com
News , chart , profile , more
Last: 57.90-2.57-4.25%
4:01pm 01/14/2009
FDX 57.90, -2.57, -4.2%) $1 billion in new senior unsecured notes. The new notes have been issued in two series: $250 million in 7.375% notes due 2014 and $750 million in 8% notes due 2019.
Proceeds from the new notes will be used for general corporate purposes, including the repayment of a $500 million note maturity in April 2009 and another $500 million note maturity in August 2009. Fitch's Issuer Default Rating (IDR) for FedEx is 'BBB', with a Stable Outlook.
FedEx's ratings reflect its strong market position in the global transportation services industry, significant liquidity position (which has been enhanced by the new notes issuance) and expectations for relatively strong free cash flow despite the rapidly slowing global economy. Although FedEx's core express delivery volumes have weakened considerably over the past six months, demand continues to grow somewhat in FedEx's ground package delivery business, and FedEx Freight continues to be one of the stronger performers in the very weak less-than-truckload (LTL) sector. To manage through the rapidly slowing economic environment, FedEx has lowered its capital spending forecast for fiscal 2009 and reduced discretionary spending in other areas of the business, both of which will help to conserve cash as revenue declines and margins tighten. FedEx's credit profile will likely weaken somewhat in the near term, but it is expected to remain generally consistent with the company's current ratings.
News , chart , profile , more
Last: 57.90-2.57-4.25%
4:01pm 01/14/2009
FDX 57.90, -2.57, -4.2%) $1 billion in new senior unsecured notes. The new notes have been issued in two series: $250 million in 7.375% notes due 2014 and $750 million in 8% notes due 2019.
Proceeds from the new notes will be used for general corporate purposes, including the repayment of a $500 million note maturity in April 2009 and another $500 million note maturity in August 2009. Fitch's Issuer Default Rating (IDR) for FedEx is 'BBB', with a Stable Outlook.
FedEx's ratings reflect its strong market position in the global transportation services industry, significant liquidity position (which has been enhanced by the new notes issuance) and expectations for relatively strong free cash flow despite the rapidly slowing global economy. Although FedEx's core express delivery volumes have weakened considerably over the past six months, demand continues to grow somewhat in FedEx's ground package delivery business, and FedEx Freight continues to be one of the stronger performers in the very weak less-than-truckload (LTL) sector. To manage through the rapidly slowing economic environment, FedEx has lowered its capital spending forecast for fiscal 2009 and reduced discretionary spending in other areas of the business, both of which will help to conserve cash as revenue declines and margins tighten. FedEx's credit profile will likely weaken somewhat in the near term, but it is expected to remain generally consistent with the company's current ratings.
