S&P lifts Quality Distribution, rates notes B-, CCC

Standard & Poor's said it raised its corporate credit rating on Quality Distribution Inc. to B- from SD, assigned a B- rating with a 4 recovery rating to the company's new $132 million 10% senior notes due 2013 and assigned a CCC rating with a 6 recovery rating to its new $81 million 11¾% subordinated payment-in-kind notes due 2013.

The outlook is stable.

The rating actions follow the completion of Quality Distribution's tender and exchange offers in which holders were offered the new notes in exchange for the series A and B senior floating-rate notes due 2012 and 9% subordinated notes due 2010.

The stable outlook reflects S&P's belief that Quality Distribution's liquidity position has improved given its recent financial restructuring and the company's modest debt maturities over the next few years.

The agency expects near-term cash needs to be less onerous, but it said the company still has significant refinancing risks in 2013.

© 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.