S&P lowers GlobalTranz

S&P said it lowered the issuer credit rating on GlobalTranz Enterprises LLC to CCC+ from B- “as we now view current leverage levels as unsustainable over the long term.”

S&P said it also lowered the issue-level rating on the company’s first-lien term loan and revolving credit facility to CCC+.

The outlook is stable.

“We believe that GlobalTranz Enterprises LLC's 2019 leverage was much higher than we expected (though the company is yet to report its year-end results) because of a weak freight market, particularly the spot-based truckload freight market in which the company participates,” S&P said in a news release.

“We expect leverage to remain very high in 2020 as well, as the company generates lower revenues and cash flow than we previously expected, reflecting the impact of the Covid-19 pandemic on its end markets.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.