Credit Markets Pay Little Attention To YRC Freight Worldwide’s Stable Cash Flows

Here is an interesting article on YRC Worldwide, and its financial position.

http://seekingalpha.com/article/3228976-credit-markets-pay-little-attention-to-yrc-worldwidess-stable-cash-flows

From the article:

Summary

  • CDS markets are grossly overstating YRC Worldwide’s credit risk, failing to take into account the company’s stable cash flows and improving ROA.
  • Moody’s is also overstating the company’s credit risk with its B3 rating four notches below Valens’ HY1 rating (Ba2 using Moody’s ratings scale).
  • Although cash flows and cash on hand fall short of all obligations by 2019, YRCW’s improving ROA sees them cash positive the year after.

    YRC Worldwide Cash Flow Profile

    Cash Flow Profile