William B. Cassidy | Aug 10, 2011 2:34PM EDT
Standard & Poor’s Financial Services upgraded the credit rating of struggling trucking operator YRC Worldwide Tuesday, giving it a “CCC” rating.
The higher credit rating follows the completion of YRC’s $500 million financial restructuring, which gave its creditors a majority stake in the company.
In July, S&P called the deal “a distressed exchange” and dropped YRC’s credit rating to “SD” or “selective default.” It previously dropped YRC’s credit rating in March. he restructuring brought YRC a new board of directors, which named James L. Welch CEO July 22, replacing long-time chief executive William D. Zollars.
The CCC rating is still only three steps above a “D” or “default” rating, and indicates a company is “currently vulnerable” and dependent on favorable conditions.
S&P raised YRC’s senior secured notes to “CC,” one rung down from CCC.
Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc
