Moody's ups Swift, loans, notes

Moody's Investors Service said it raised the corporate family rating for Swift Transportation Co., LLC to Ba3 from B1.

At the same time, the agency raised the ratings for Swift's senior secured credit facility, consisting of a $400 million revolving line of credit, a $229 million term loan B-1 and a $410 million term loan B-2, to Ba1 from Ba2.

It also upgraded the rating for Swift's $500 million senior second priority notes to B1 from B3.

The outlook is stable.

Moody's said the action considers Swift's leading position in the truckload sector in North America, its attractive operating margins as well as its substantial fleet investments.

The Ba1 ratings for Swift's facility reflect the senior position of these instruments in Moody's Loss Given Default analysis. The combined effect of the upgrade of the corporate family rating and an increase in the proportion of unsecured debt in the LGD analysis caused a two notch upgrade of the rating for the senior second priority notes to B1 from B3, Moody's said.

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