The credit rating of Echo Global Logistics has taken a one-notch downward hit by S&P Global Ratings, with its interest costs rising and its revenue sliding on the back of the weaker freight market.
Moving to B- from B pushes the credit rating of Echo, which was acquired by The Jordan Co. two years ago, further into non-investment-grade territory. The entire class of B ratings is defined as “highly speculative.” At B-, it is six notches less than BBB-, the lowest investment-grade rating on the S&P scale.
S&P Ratings (NYSE: SPGI) did leave Echo’s recovery rating as a “3,” which means there would be a 50% to 75% chance of recovery in the event of a default.
