S&P lowers YRC

Standard & Poor's said it lowered YRC Worldwide Inc.'s corporate credit rating to B from BB and removed ratings from CreditWatch, where they were placed with negative implications on Oct. 24.

The outlook is negative.

The actions reflect heightened concerns over the company's covenant cushion, liquidity position and operating prospects over the next year, given the slowing U.S. economy, operational challenges and mounting competitive pressures in the trucking sector, according to the agency.

Ratings reflect the company's participation in the competitive, capital-intensive and cyclical trucking industry, high labor costs associated with its unionized work force and earnings pressure due to weak demand, the agency said.

These negative credit characteristics are marginally offset by its leading market position in the long-haul, less-than-truckload trucking industry, which has high barriers to entry, S&P said.

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