Moody's lowers Swift

Moody's Investors Service said it downgraded Swift Transportation Co., Inc.'s corporate family rating to B3 from B2 and its second-lien notes to Caa2 (LGD5, 84%) from Caa1. The first-lien credit facility remains at B1 (LGD3, 32%).

The outlook was changed to negative from stable.

The downgrade reflects weaker-than-expected operating results since the April 2007 acquisition by Saint Acquisition Corp., according to the agency.

"As the trucking sector faces a continued weak operating environment, heavily levered operators such as Swift will likely continue to encounter difficulty with regards to its profitability and financial flexibility," David Berge, vice president of Moody's, said in a written statement.

Ratings could be lowered if Swift's debt-to-EBITDA ratio were to exceed 7 times.

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