Moody's affirms Pacer

Moody's Investors Service said it affirmed Pacer International, Inc's ratings, including the corporate family rating at Ba3.

The outlook is stable.

Moody's said the ratings consider Pacer's position as an important participant in the high growth intermodal rail transportation sector and its record of debt reduction from improving free cash flow, which has produced progressively lower debt to EBITDA and higher EBIT to interest.

Key ratings drivers include the strong demand for intermodal services over the near to intermediate term which supports the expectation of continuing free cash flow for Pacer, although the free cash flow is likely to be at a somewhat lower level than the recent past because of the dividend, the agency said.

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