Fitch downgrades YRC

Fitch Ratings said it downgraded the issuer default ratings of YRC Worldwide Inc. and subsidiary YRC Regional Transportation, Inc. to CCC from B, YRC Worldwide's secured credit facilities to B/RR1 from BB/RR1, its senior unsecured notes to C/RR6 from CCC+/RR6 and YRC Regional's senior secured notes to C/RR6 from CCC+/RR6.

All of the ratings have been placed on Rating Watch negative.

The agency said the downgrade reflects heightened concerns about the company's prospects in light of ongoing severe weakness in the U.S. freight market as well as the company's announcement that it is engaged in discussions with its lenders to revise the leverage covenants in its credit facility and asset-backed securitization facility agreements.

These concerns persist despite the announcement that YRC's unionized employees, represented by the International Brotherhood of Teamsters, have ratified amendments to the company's labor agreements that will reduce union wages through the remaining life of contracts, Fitch said.

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