Reception Purchaser LLC (dba STG Logistics) completed a distressed debt exchange and issued new debt, improving its short-term liquidity and cash interest expense requirements. We raised our issuer credit rating on STG to 'CCC+' from 'D' (default). At the same time, we assigned our 'B' issue-level rating to the company's new first-lien first-out term loan, 'CCC+' rating to the new first-lien second-out term loan, and 'CCC' rating to the new first-lien third-out term loan. We also raised our issue-level rating on STG's existing first-lien debt to 'CCC'. The negative outlook reflects our belief that absent an improvement in the freight market conditions, STG's continued free cash flow deficits will render it vulnerable to a liquidity shortfall, which could lead to
