Moody's drops Arkansas Best to junk

Moody's Investors Service said it lowered Arkansas Best Corp.'s senior unsecured bank credit facility to Ba1 (LGD4, 51%) and assigned a corporate family rating of Ba1, a probability-of-default rating of Ba1 and a speculative grade liquidity rating of SGL-2.

The outlook is negative. This concludes the ratings review commenced on July 23, 2009.

Moody's said the multiple-notch downgrade was prompted by the dramatic deterioration in operating performance amid an especially deep and prolonged industry recession and its exposure to the key multi-employer pension plans.

The Ba1 corporate family rating is supported by the company's strong market position, minimal balance sheet debt and a strong liquidity profile, the agency said.

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