S&P Raises YRC Worldwide (YRCW) To 'CCC' Following Restructuring

After the close, S&P raised its corporate credit rating on YRC Worldwide Inc. (Nasdaq: YRCW) to 'CCC' from 'SD', based on our evaluation of the company's credit profile, pro forma for the restructuring. The firm assigned a 'CC' issue-level rating to YRCW's convertible senior secured payment-in-kind (PIK) notes due 2015 with a '6' recovery rating. The outlook is stable.

"The rating actions reflect YRCW's completion of its previously announced financial restructuring," explained Standard & Poor's credit analyst Anita Ogbara. In conjunction with the restructuring, YRCW issued convertible notes and replaced its existing asset-backed securitization (ABS) facility with a new three-year, $400 million asset-based loan (ABL) facility. YRCW also exchanged a portion of the company's loans and other obligations for new securities, including equity. In accordance with our criteria for distressed debt exchanges and redemptions, we previously lowered our long-term corporate credit rating on YRCW to 'SD' (selective default).

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Meritage Homes (MTH) Reiterated at Market Outperform by Citizens as Stock Up 24% YTD
• Morgan Stanley Resumes Gap, Inc. (GAP) at Equalweight
• Morgan Stanley Resumes Victoria Secret (VSXY) at Overweight