S&P: UPS remains on watch

Standard & Poor's said its ratings on United Parcel Service Inc. remain on CreditWatch with negative implications, where they were placed on Feb. 17.

UPS announced on March 19 that it had reached an agreement to acquire TNT Express NV for an estimated $6.77 billion.

"We believe the transaction will enhance UPS' business profile by bolstering its position in Europe and providing it with growth opportunities in other international markets where it currently has limited presence," said S&P credit analyst Lisa Jenkins in a news release.

"However, the transaction will initially cause a deterioration in credit metrics."

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