Moody's lowers UPS view to negative

Moody's Investors Service said it changed the outlook on the ratings of United Parcel Service, Inc. (UPS) to negative from stable.

Moody's also said it affirmed the A1 senior unsecured and P-1 short-term ratings assigned to UPS, along with the P-1 short-term rating assigned to UPS Global Treasury plc.

The negative outlook reflects the potential for funded debt to remain elevated through and beyond 2020 because of its sustained significant returns to shareholders during a period of weaker free cash flow generation, the agency said.

The ratings consider the company's unique market position and extensive operational capabilities as the world's largest package delivery company with leading positions in the freight and logistics industries, Moody's said.

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