S&P affirms Transport Industries

Standard & Poor's said it affirmed its ratings on Transport Industries Holdings LP and subsidiary Transport Industries LP, including the B+ corporate credit rating.

S&P said it also affirmed its B+ senior secured bank loan rating and 4 recovery rating on subsidiary Transport Industries LP's bank facility.

At the same time, the agency added it revised the outlook to negative from stable following the company's announcement that it plans to purchase a small truckload brokerage services company that serves the United States and Canada for $30 million.

Ratings on Transport Industries Holdings reflect its very aggressive growth strategy, limited financial flexibility, concentrated customer base and relatively small position within the fragmented truckload trucking and logistics industries the agency said, adding that positive credit factors include the company's somewhat variable cost structure by using owner-operators.

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