Press Releases
fossenier.patrick@cnf.com
Press - Gary Frantz (650) 378-5200
frantz.gary@cnf.com
S&P Raises Ratings on CNF to BBB; Fitch Initiates Coverage with BBB Rating and Stable Outlook
Agency Actions Cite Strong Liquidity, Sustained Improvement in Operating Performance, Profitability
SAN MATEO, CA - February 06, 2006
Standard and Poor’s (S&P) has upgraded its corporate credit and senior unsecured debt ratings on CNF Inc. (NYSE:CNF) to BBB while Fitch Ratings has initiated coverage of CNF with a rating of BBB on the company’s approximately $595 million in outstanding debt obligations, as well as its $400 million unsecured revolving credit facility.
Both agencies, in recently issued research reports, said the rating outlook for CNF was stable. The rating updates reaffirm the company’s debt as investment grade.
“The upgrade reflects sustained improvements in operating performance and profitability, combined with financial deleveraging over the past several years and the expectation that CNF will maintain a moderate financial policy,” said S&P in its research update. S&P previously had CNF at BBB-. It was the company’s first upgrade from S&P since 1997.
“The ratings reflect CNF’s solid operating performance, strong liquidity and manageable debt load, offset to a degree by the cyclical nature of the freight transportation industry,” said Fitch in its initial coverage report.
“These rating actions speak to the stability and strength of CNF’s financial position, and the earnings growth and cash flow potential of the enterprise,” said Kevin Schick, CNF’s senior vice president and chief financial officer. “We’re a leading player in the LTL trucking and logistics markets, and we have an excellent balance sheet, financial flexibility and a high-service business model that has stood the test of time.
“We’re gratified to see these two respected organizations recognize the improved financial profile and the sound operating foundation CNF has today,” Schick said.
Further details of each agency’s research and their press releases announcing the CNF rating actions can be obtained from each agency’s respective web site:
www.standardandpoors.com, and www.fitchratings.com
CNF Inc. is a $4.2 billion freight transportation and logistics company with businesses in less-than-truckload motor carriage, truckload carriage, air freight, logistics, warehousing, supply chain management and trailer manufacturing. Further information about CNF Inc. and additional press releases are available via the Internet at www.cnf.com
###
