Moody's: U.S. Xpress view negative

Moody's Investors Service said it changed the outlook of U.S. Xpress Enterprises, Inc. to negative from stable due to the delay in the company's proposed $250 million senior secured notes offering that had been expected to improve the company's liquidity profile, partly by addressing covenant concerns.

Concurrently, the agency affirmed all the company's ratings, including the B3 corporate family rating and the B2 ratings on its secured bank debt. The Caa1 rating on the proposed $250 million senior secured notes due 2020 was withdrawn.

Moody's said the change in outlook to negative from stable reflects weak liquidity, in particular the expectation that there could be limited, if any, covenant headroom under the company's bank credit agreement during 2014.

The negative outlook also reflects uncertainty regarding the timing and economics of any refinancing of senior credit facility indebtedness maturing in 2014 to 2016. Weaker than expected operating performance in recent periods, particularly during the latter part of 2012, has contributed to lower than anticipated EBITDA levels, the agency added.

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