Jack Cooper Holdings Corp. Senior Secured Recovery Rating Revised To #4#; #CCC-# Senior Unsecured Issue Rating Affirmed

Stocks and Financial Services Press Releases Wednesday January 27, 2016 09:10
NEW YORK--27 Jan--Standard & Poor's

NEW YORK (Standard & Poor's) Jan. 26, 2016--Standard & Poor's Ratings Servicessaid today that it has revised its recovery rating on Jack Cooper HoldingsCorp.'s $375 million senior secured notes due 2020 to '4' from '3'. The '4'recovery rating indicates our expectation for average recovery (30%-50%; lowerhalf of the range) of principal in the event of a payment default. Our 'CCC+'issue-level rating on the senior secured notes remains unchanged.

At the same time, we are affirming our 'CCC-' issue-level rating on thecompany's $165 million senior unsecured PIK toggle notes due 2019, which wereissued through Jack Cooper Enterprises Inc. The '6' recovery rating isunchanged, indicating our expectation for minimal recovery (0%-10%) of

principal in a payment default scenario.
Our 'CCC+' corporate credit rating and stable outlook on Jack Cooper HoldingsCorp. are unchanged.

"Our corporate credit rating on Jack Cooper reflects the company's limitedcustomer diversity and its participation in the capital-intensive, pricecompetitive, and cyclical trucking sector," said Standard & Poor's creditanalyst Michael Durand. "The company's position as the largest car hauler inthe U.S. only partially offsets these weaknesses." Jack Cooper operates afleet of over 2,400 rigs (of an estimated 10,250 rigs in its industry) and anetwork of 57 terminals across North America.

The stable outlook reflects our view that Jack Cooper's ongoing efforts toimprove its operating performance will be tempered by industry volatility andthe company's high debt burden.

We could lower our ratings on Jack Cooper if the auto industry experiences aslowdown or operational challenges that cause the company's earnings toweaken--threatening its ability to make interest payments--or if the company'sliquidity becomes constrained, leading us to revise our liquidity assessmentto less than adequate or weak.

We consider an upgrade within the next 12 months unlikely, given the company'shighly leveraged financial profile and its aggressive financial policy.

Latest Press Release

Fitch Ratings: PTT#s Purchase of Murphy Oil#s Malaysia Assets to Raise Output, Reserves

PTT Exploration and Production Public Company Limited's (PTTEP) plan to acquire Murphy Oil Corporation's (BB+/Stable) business in Malaysia will immediately increase the group's reserves and production profile, Fitch Ratings says. In our view, the...

KBank teams up with eight partners to launch 2nd K SME Good to Great Nurture growth of food manufacturing, cosmetics and retail businesses with THB1-million prize money up for grabs

KBank gears up for the second-year K SME Good to Great project to promote food manufacturing, cosmetics and retail businesses. The event features business courses, seminars, business boot camps and one-on-one advisory service. The strongest 10...

KTC joins hands with seven beauty brands to rejuvenate and enhance online members skins in preparation of the summer.

"KTC" or Krungthai Card Public Company Limited, jointly with seven leading online beauty business alliances, including "Biotherm", "Kiehl's", "Lancome", "Urban Decay" within L'Oreal Luxe along with "Beauticool", "Craze", and "Konvy" provide members up to...

Photo Release: EXIM Thailand Organizes EXIM White Day 2019 Pledging to Fight Against Corruption

Mr. Adul Chotinisakorn (third right), Chairman of the Corporate Governance and Social Responsibility Committee of Export-Import Bank of Thailand (EXIM Thailand), jointly with members of the Board of Directors, Management and staff of EXIM Thailand,...

PEA and SCB join forces to unlock PEA Hero Platform with PEA Energy Intelligence to extend digital lending experience for PEA business network

In a bid to bring the digital ecosystem to the energy industry, the Provincial Electricity Authority (PEA) has collaborated with Siam Commercial Bank (SCB) to develop PEA Energy Intelligence, a fully integrated digital service to help manage business and...

Related Topics