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Issuer Ranking: North American Transportation Companies, Strongest To Weakest Jul 11
Standard & Poors, July 2011
Abstract
The most significant potential headwind for North American transportation companies has shifted from high oil prices to slowing economic growth. Standard & Poor's Ratings Services' economists now forecast 2.6% real U.S. GDP growth in 2011, compared with our expectation of 3% as of last January. Slowing economic growth is likely to soften demand for transportation companies, in particular for those tied to consumer spending such as airlines, car rental, and trucking. Meanwhile, oil prices, while high in absolute terms and still well above the levels of a year ago, appear to have moderated, with West Texas Intermediate (WTI) crude oil recently below $100 per barrel. Our economists expect an average price of $100.89 for full-year 2011. This moderation of prices...
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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