S&P: Con-way on watch

Standard & Poor's said it placed its ratings on Con-way Inc., including the BBB long-term corporate credit rating, on Creditwatch with negative implications.

The rating action follows concerns about the near-to-intermediate-term outlook for the trucking sector given the slowing U.S. economy, S&P said.

The agency added that although the company's performance has been better than that of some of its peers in the less-than-truckload sector, the outlook for the duration of 2008 and the first half of 2009 has worsened, given the expected further weakening of the domestic economy.

For the nine months ending Sept. 30, Con-way generated revenues and operating income that were up 23% and 17%, respectively, versus the prior year, largely due to the Contract Freighters Inc. acquisition, which was completed in August 2007, the agency said.

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