S&P: GWLS outlook negative

Standard & Poor's said it revised its outlook on GWLS Holdings Inc. to negative from stable and affirmed the B- corporate credit rating. Greatwide Logistics Services Inc.'s first-lien bank loan is rated B and its second-lien bank loan CCC.

The outlook revision reflects a somewhat weaker-than-expected financial performance, according to the agency. If market conditions and operating results fail to improve, S&P said it could lower the ratings.

The ratings reflect the company's aggressive growth strategy and highly leveraged balance sheet, limited financial flexibility, concentrated customer base, and mid-sized position within the fragmented and competitive truckload trucking and logistics industries, the agency said.

Positive credit factors include the company's somewhat variable cost structure and long-term contractual relationships, S&P said.

Pro forma for the December 2006 recapitalization, the total debt-to-EBITDA ratio is slightly more than 7 times, the agency said.

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