- THE MAGAZINE
Standard & Poor’s Corp. has put YRC Worldwide Inc.’s credit rating on watch as of Jan. 13, 2014, with “negative implications.”
The move follows the International Brotherhood of Teamsters’ overwhelming rejection last week of the company’s proposal to extend and modify their labor agreement.
- Read the World Trade 100 news story at YRC & Teamsters Clash.
In its credit watch announcement, S&P said the readily available funding at the Overland Park-based trucking company is “less than adequate” and its business risk is “vulnerable.”
YRC owes lenders $395 million this year, starting with $69 million due Feb. 14. S&P said its view of the company also includes its roughly $10 billion obligation to a multi-employer pension fund covering its employees.
During the credit watch, S&P said it would monitor changes in YRC’s available funding, its capital structure and its operating prospects.
Market shares of YRC have continued to plummet daily in the wake of the failed negotiations and this new warning from S&P.