S&P ups Quality Distribution outlook to positive

Standard & Poor's said it revised its outlook on Quality Distribution Inc. to positive from stable and affirmed the company's B- corporate credit rating, B- senior secured debt rating, CCC senior unsecured debt rating and CCC subordinated debt rating.

S&P said the outlook revision reflects the company's improved operating and financial performance and the agency's belief that market conditions will remain solid over the near term, allowing the company to further reduce debt. If the company continues to improve its credit profile, a modest upgrade in the next twelve months is possible.

Ratings on Quality Distribution reflect its participation in a low-margin, fragmented industry, combined with a weak, albeit improving financial profile, S&P said. The ratings are supported by a strong demand for the company's chemical transportation services as a result of the solid economy and market share gains, resulting in increased revenues and earnings.

Total debt to EBITDA is around 5x.

© 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.