June 9, 2010
TrailerBridge reports improved credit ratings
Trailer Bridge, Inc. (NASDAQ Global Market: TRBR) says that on June 1, 2010, Moody's Investors Service changed the rating outlook of Trailer Bridge, Inc., to stable from negative and affirmed all existing ratings, including the B3 Corporate Family Rating (CFR). Moody's cited its expectation that credit metrics should remain within the B3 band and "substantial progress toward Trailer Bridge's final dismissal from a class action lawsuit related to anti-competitive activity in the Puerto Rico marine trade lane."
Moody's also confirmed its CFR of B3 on the company's $83 million, 9.25% senior secured notes due November 2011.
Moody's announcement follows a similar action taken by Standard & Poor's Ratings Services (S&P). In April 2010, S&P revised its outlook on the company from negative to stable.
"Trailer Bridge has over the past year improved its operating performance due to significantly lower fuel expenses, cost-cutting and better operating efficiencies, despite reduced freight volumes and pricing pressures from prolonged economic weakness," S&P said in its news release.
Ivy Suter, Trailer Bridge's Chief Executive Officer, said, "Over the past year, our management team has remained focused on maximizing our cash flow and strengthening our balance sheet. We purchased $1.0 million face amount of our outstanding Senior Secured Notes in January 2010, which has resulted in total debt reduction of $5.3 million over the last four quarters. We believe that the recent upgrades of Moody's and S&P are a strong validation that we are making progress to the benefit of all Trailer Bridge shareholders."