Allied Moves to Protect Credit Rating
Top executives of Allied Holdings, the nation’s largest auto hauler, are trying to head off a move by Standard & Poor’s to downgrade its corporate credit rating.
A reduction in its credit rating could raise the cost of borrowing for Allied.
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The New York-based credit rating agency placed the company on CreditWatch with negative implications on Oct. 29, noting that Allied’s losses in the third quarter were larger than anticipated due to reduced average loads and higher fuel and labor costs.
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"We are disappointed with S&P’s announcement," said Allied Chairman Robert J. Rutland. "Our earnings have been below expectations, but we expect to report a profitable fourth quarter that will eliminate our loss for the first nine months of 1999."
