XPO Logistics Inc. has announced it intends to spin off its logistics segment. The remaining company would comprise XPO's transportation business, including its less-than-truckload (LTL), freight brokerage, and last-mile delivery operations. Although we view LTL transportation as more volatile than contract logistics, we believe the remaining company would benefit from its geographic diversification and stronger operating efficiency than that of some of its peers. Therefore, S&P Global Ratings is affirming its 'BB' issuer credit rating on XPO. The stable outlook reflects our expectation that the higher industry risk and cyclicality would likely offset any improvement in credit metrics. Our outlook is stable. We will continue to monitor XPO's plans to spin off its contract logistics operations and the subsequent capitalization
