One of 3 ratings agencies now has XPO as investment-grade

LTL carrier XPO has been upgraded to investment-grade credit status by Fitch Ratings, one of three major credit rating agencies. The rating upgrade to BBB- is a notch above the threshold that separates investment-grade from non-investment grade debt. This marks a shift from XPO's previous rating of BB+ from Fitch, which it held since March 2023.

Fitch's upgrade was based on XPO's robust operating and commercial performance, as well as its commitment to reducing debt levels in line with its publicly stated targets for 2026. XPO's financial results for the most recent nine months show a significant increase in revenue, net income, and adjusted operating ratio, all of which contributed to the rating upgrade.

Fitch also noted that XPO's cash flow has improved, with debt repayments more than tripling in the past nine months. The agency's outlook on XPO is stable, indicating that any changes to the rating are unlikely in the near term.