Here is an interesting article on YRC Worldwide, and its financial position.
From the article:
- 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.