S&P Global Ratings upgraded XPO Logistics Inc. to BB+ from BB. This action places the less-than-truckload carrier one notch below investment grade.
Broad freight market improvements and internal financial changes drove the upgrade. S&P forecasts XPO's North American tonnage will grow 2% to 3% this year.
Yields are expected to increase between 4% and 5%. The agency also noted improved efficiency through a significant reduction in outsourced linehaul miles.