Bonds & Rates
Home›Bonds & Rates›Corporate Bonds›S&P upgrades XPO’s issuer rating to BB+ just below inv…
S&P upgrades XPO’s issuer rating to BB+ just below investment grade
S&P Global cited an improved FFO-to-debt ratio, saying it rose to 35.7% in the second quarter and is expected at 35% to 36% for 2026.
XPO’s debt was upgraded by S&P Global Ratings, with the company’s most important issuer credit rating raised to BB+ from BB, leaving it one notch below the investment grade cutoff, Yahoo Finance reported.
S&P said one specific XPO debt series still holds the investment grade designation, a BBB- for an issue-specific senior secured obligation that was affirmed in the latest action.
In explaining the move, S&P pointed to strengthening trucking market fundamentals and spillover benefits to XPO’s less-than-truckload business, along with improved credit metrics.
S&P also cited XPO’s expected financial performance, including an FFO-to-debt ratio of 35.7% in the second quarter and guidance for 35% to 36% for the year, versus an earlier full-year expectation of 30%, and it forecast the ratio would reach about 40% next year.