XPO upgraded by S&P, just one notch below investment-grade
XPO has had its debt rating upgraded by S&P Global Ratings. The post XPO upgraded by S&P, just one notch below investment-grade appeared first on FreightWaves .
XPO, an LTL carrier, recently saw its debt rating upgraded by S&P Global Ratings to BB+ from BB, just one notch below investment-grade status. The company's debt rating had been cut to BB from BB+ in July 2025. S&P Global's rating change was largely driven by stronger fundamentals in the trucking market and improved key debt metrics like the Funds from Operations (FFO) to debt ratio.
XPO's senior secured debt received an investment-grade rating of BBB-, while its senior unsecured debt was upgraded two notches to BB. Moody's still has XPO rated Ba2, which is two notches below the investment-grade cutoff. The positive outlook from S&P Global is not a prerequisite for a rating upgrade. Truckload spillover from the truckload market, which LTL carriers often view negatively, was seen as a positive by S&P Global due to tight trucking supply and higher fuel costs shifting shipments to LTL and other modes.
S&P Global expects XPO's North American tonnage to rise 2% to 3% this year, with a yield increase of 4% to 5%.
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