S&P upgrades Greyhound

Standard & Poor's said it raised its corporate credit rating on Greyhound Lines Inc. to CCC+ from CCC and removed it from CreditWatch, where it was placed July 13.

The senior unsecured debt rating was raised to CCC- from CC. The outlook is now developing.

S&P said the rating actions reflect positive developments at the company over the past few quarters, including the ratification of new labor contracts, the successful renegotiation of Greyhound's credit facility, and improved operating performance.

However, the scope of the upgrade was limited by continuing concerns regarding competitive pressures, high debt leverage, and the potential for adverse financial consequences related to a recently disclosed default judgment rendered against the company. Greyhound is owned by Laidlaw International Inc. (BB/stable/--). Laidlaw does not guarantee Greyhound's debt and its financial support of Greyhound is limited to just $15 million.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.