July 17 - Standard & Poor's Ratings Services today assigned its 'B-' rating
to Overland Park, Kan.-based YRCW Receivables LLC's $400 million asset-backed
loan (ABL) facility due September 2014. The ABL facility was finalized in
conjunction with YRC Worldwide Inc.'s financial restructuring (completed on July
22, 2011), comprises a $175 million term A tranche and a $225 million term B
tranche. The ABL facility is secured by a first lien on accounts receivable from
various operating subsidiaries.
We assigned a '1' recovery rating to the term loan A and term loan B
facilities to reflect our expectation that lenders would receive very high
(90%-100%) recovery following a payment default.
The ratings on parent company YRC Worldwide Inc. (YRCW) reflect its position
in the competitive, capital-intensive, and cyclical trucking industry. In
addition, the company has meaningful off-balance-sheet contingent obligations
related to its multiemployer pension plans. YRCW's substantial market position
in the less-than-truckload (LTL) sector, which has fairly high barriers to
entry, is a positive. Standard & Poor's categorizes YRCW's business risk
profile as "vulnerable," financial risk profile as "highly leveraged," and
liquidity as "less than adequate" according to our criteria......................
TEXT-S&P rates YRC Worldwide's loan 'B-' | Reuters
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