XPO Logistics Inc. 'B' Corporate Credit Rating Affirmed Following Acquisition Announcement; Outlook Stable

On April 28, 2015, Greenwich, Conn.-based XPO Logistics Inc. announced that it had agreed to acquire the European logistics provider Norbert Dentressangle S.A. for approximately $3.5 billion. The proposed acquisition, which is subject to regulatory approval, will likely close in the first half of 2015. XPO has stated that it plans to finance the acquisition in a manner that preserves its long-term publicly stated net debt-to-EBITDA target range of 3x-4x. That said, the company has indicated that it may temporarily exceed its target levels following the acquisition. The company has historically accessed the private markets for financing, in addition to public debt issuance. Our existing ratings on the company already incorporate its aggressive acquisition program. We are affirming our 'B'

...+ On April 28, 2015, Greenwich, Conn.-based XPO Logistics Inc. announced that it had agreed to acquire the European logistics provider Norbert Dentressangle S.A. for approximately $3.5 billion. + The proposed acquisition, which is subject to regulatory approval, will likely close in the first half of 2015. + XPO has stated that it plans to finance the acquisition in a manner that preserves its long-term publicly stated net debt-to-EBITDA target range of 3x-4x. That said, the company has indicated that it may temporarily exceed its target levels following the acquisition. The company has historically accessed the private markets for financing, in addition to public debt issuance. Our existing ratings on the company already incorporate its aggressive acquisition program. + We are affirming our 'B' corporate credit rating on XPO Logistics Inc. The outlook remains stable. + The stable outlook reflects our expectation that the company's credit metrics may weaken moderately following the proposed...

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