S&P: Greyhound outlook to positive

Standard & Poor's said it affirmed its ratings on Greyhound Lines Inc., including the CCC+ corporate credit rating and CCC- senior unsecured rating.

The outlook was revised to positive from developing.

S&P said the outlook change reflects Greyhound's successful resolution of the default judgment pending against it and the potential for a higher rating if the company's restructuring actions are successful in improving operating performance and credit protection measures.

Ratings are currently constrained by competitive market conditions and the company's high debt leverage, according to S&P.

Greyhound is owned by Laidlaw International Inc. (BB/Watch Positive/--). Laidlaw does not guarantee Greyhound's debt and its financial support of Greyhound is currently limited to just $15 million.

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