S&P: Yellow Roadway still on watch

Standard & Poor's said its ratings on Yellow Roadway Corp., including the BBB- corporate credit rating and senior unsecured rating, remain on CreditWatch negative, where they were placed on Feb. 28.

However, S&P said it anticipates affirming its ratings on Yellow Roadway if the company completes its acquisition of USF Corp. (BBB+/Watch Negative/--) on terms substantially similar to those currently indicated. At that time, a stable outlook will be assigned.

Ratings on both companies had been placed on CreditWatch following the announcement that Yellow Roadway had agreed to acquire USF Corp.

S&P said Yellow Roadway's acquisition of USF will significantly increase Yellow Roadway's market share and product offerings in the mature less-than-truckload trucking industry, but the acquisition-related debt will somewhat weaken credit measures, which had been improving.

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