S&P affirms Transport Industries

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

The rating affirmation follows Transport Industries' acquisition of NFC Inc., a provider of dedicated transportation services in the Pacific Northwest, and Stewart-Stiles Truck Lines Inc., a small, local less-than-truckload company. The acquisition was funded through a $10 million increase to the company's existing term loans, $14.5 million from the revolving credit facility, and a small investment from NFC's previous owners.

S&P said ratings on Transport Industries Holdings LP reflect its small position within the fragmented truckload and logistics industries, limited financial flexibility, concentrated customer base, and aggressive growth strategy. Positive credit factors include the company's use of owner-operators and long-term contractual relationships.

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