Moody's affirms YRC

Moody's Investors Service said it affirmed YRC Worldwide Inc.'s Ba1 corporate family rating after the company said it would take a pre-tax impairment charge of $700 to $800 million because of the decline in estimated point-in-time fair value of the acquired former USF Corp. companies.

The outlook remains stable.

Moody's said the impairment charge does not immediately affect the company's credit profile, as it does not impact cash flow, liquidity or covenant conditions in YRC's credit facilities.

The agency said the size of the charge, however, raises concerns about the overall earnings capacity of YRC's regional transportation operations. The charge, when combined with cyclical economic pressures facing the long-haul businesses, could negatively affect the company's cash flows over the next one to two years, Moody's said.

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