Moody’s cuts Daseke

Moody’s Investors Service said it downgraded the ratings of Daseke Cos., Inc., including the corporate family rating to B2 from B1, the probability of default rating to B2-PD from B1-PD and the senior secured rating to B2 from B1. The speculative grade liquidity rating is maintained at SGL-3.

“The ratings reflect Daseke’s challenges in establishing a corporate structure that effectively manages the company's large number of largely individually operated and separately branded trucking companies, while generating attractive margins and returns. These challenges are exacerbated by governance risks posed by the current lack of a permanent CEO and CFO. Moody’s expects EBITA margins of only 1.7% in 2019. EBITA margins are likely to improve to a still modest 3% in 2020, aided by a step-down in depreciation and the implementation of a cost restructuring plan,” the agency said in a press release.

The outlook is negative.

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