XPO Logistics Inc.'s enhanced operating performance and debt reduction have improved its credit metrics. This improvement has led us to reassess the company's competitive position. Therefore, we are upgrading XPO to 'BB-' from 'B+'. The stable outlook reflects our expectation that--barring any major debt-financed acquisitions--XPO's credit metrics will remain relatively consistent through 2018 with a funds from operations (FFO)-to-debt ratio in the high teens percent area and a debt-to-EBITDA metric in the mid-3x area. On Aug. 25, 2017, S&P Global Ratings raised its corporate credit rating on XPO Logistics Inc. to 'BB-' from 'B+'. The outlook is stable. At the same time, we raised our issue-level rating on the company's senior secured credit facility to 'BB+' from 'BB'. The '1'
