S&P rates Western Express notes B-

Standard & Poor's said it assigned a B- corporate credit rating on Western Express Inc., along with a B-rating on the company's $275 million senior secured notes due 2018, as well as a 4 recovery rating, indicating an expectation of 30% to 50% recovery of principal in a default.

The ratings are subject to review of final documents. The company said it will use the proceeds to refinance existing term loans and purchase new equipment, S&P said.

The outlook is stable.

The ratings reflect the truckload carrier's highly leveraged financial profile, as well as its participation in the capital intensive and cyclical trucking sector, which is subject to pricing pressure and intense competition, S&P said.

The company's midsize market position and good customer diversity partially offset these weaknesses, the agency said.

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