April 5, 2012 / 6:12 PM / 5 years ago

TEXT-S&P raises Swift Services' second-lien notes to 'B+'

April 5 - Standard & Poor's Ratings Services today raised its issue rating
on the senior secured second-lien notes of Swift Services Holdings Inc. to 'B+'
from 'B'. We simultaneously revised our recovery rating on the notes to '4' from
'5' to reflect our greater recovery expectations in a simulated payment default.
The '4' recovery rating indicates that we now expect noteholders would receive
average (30%-50%) recovery. Swift Services Holdings Inc. is a subsidiary of
Phoenix, Ariz.-based trucking company Swift Transportation Co. 	
	
We revised our second-lien recovery expectations following the projected 	
reduction of first-lien claims that will result from scheduled amortization of 	
Swift Transportation Co. LLC's recently closed $200 million B-1 term loan. Our 	
simulated default scenario involves the loss of a major customer (or two) in 	
2015 amid higher fuel prices, rising interest rates, and lower economic 	
activity. This would result in lower revenue in 2014 and 2015 and pressure on 	
margins from rising costs leading to bankruptcy in 2015. We believe that 	
lenders would achieve greatest recovery value through reorganization of the 	
company rather than liquidation.	
	
For the complete recovery analysis, please see our recovery report on Swift 	
Transportation Co., to be published following this release on RatingsDirect.	
	
RELATED CRITERIA AND RESEARCH	
     -- Summary: Swift Transportation Co., Jan. 27, 2012	
     -- 2008 Corporate Criteria: Rating Each Issue, April 15, 2008	
	
RATINGS LIST	
	
Swift Transportation Co.	
 Corporate credit rating                B+/Stable/--	
	
Issue Rating Raised; Recovery Rating Revised	
                                        To                 From	
Swift Services Holdings Inc.	
 Senior secured (second lien)	
  $500 mil. 10% notes due 2018          B+                 B	
  Recovery rating                       4                  5	
	
	
Complete ratings information is available to subscribers of RatingsDirect on 	
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 	
by this rating action can be found on Standard & Poor's public Web site at 	
www.standardandpoors.com. Use the Ratings search box located in the left 	
column.

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