Odyssey Logistics And Technology Corp.

The stable outlook on Odyssey Logistics reflects our expectation that the company's credit metrics will improve modestly through 2020. We expect the company's debt to EBITDA to improve to the high-5x area in 2019 from the high-6x area in 2018 and further to the mid-5x area in 2020, while its FFO to debt remains in the high-single-digit percent area through 2020. We could lower our ratings on Odyssey over the next 12 months if the company pursues additional debt-financed acquisitions such that its debt to EBITDA increases above 7.0x or its FFO-to-debt ratio falls below 6% on a sustained basis. This could also occur if the company's earnings materially weaken due to a downturn in the demand for metals or

...We expect Odyssey Logistics to remain a relatively small participant in the large and fragmented U.S. third-party industry. Odyssey is a niche logistics provider based primarily in the U.S., providing a range of services, including intermodal, trucking solutions, and domestic and international freight forwarding. Odyssey has a modest market share relative to larger competitors, such as C.H. Robinson Worldwide, XPO Logistics, and J.B. Hunt. The company operates through a largely asset-light model, but also maintains a specialized fleet of intermodal tank containers and multi-axle flatbed trucks, which allow it to serve customers subject to complex regulations. We forecast improvement in operating margins through the next year, partially offsetting moderation in revenue growth. We expect the company's revenue to remain relatively flat in 2019, primarily due to lower intermodal and trucking volumes as well as uncertainties associated with the global trade environment, and grow modestly in...

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