XPO Logistics Inc. continues to progress on the strategic review of its business lines while also repaying debt. Although additional divestitures will likely reduce the company's overall scale, we believe additional debt reduction could lead to a higher rating. Therefore, we placed all ratings, including our 'BB' issuer credit rating, on CreditWatch with positive implications. We plan to resolve the CreditWatch when the company has completed, or is sufficiently likely to complete, its divestitures. Nonetheless, we believe a higher degree of macroeconomic uncertainty presents some risk to our base case scenario. As a provider of LTL transportation, XPO derives a large portion of its business from customers in the industrial and manufacturing sectors, which represented about 37% of revenue in
