Standard & Poor’s reaffirms ratings on UPS and lifts outlook to ’stable’ from ‘negative’
By APThursday, August 26, 2010
S&P renews ratings on UPS
NEW YORK — Standard & Poor’s said Thursday it reaffirmed credit ratings on United Parcel Service Inc. and gave a better outlook for the company based on improving demand and cost-cutting.
S&P retained a corporate credit rating of “AA-minus” and “A-1-plus” on its commercial paper. It revised UPS’ outlook to “stable” from “negative.”
The ratings agency said UPS’ credit measurements have improved in recent quarters as demand improved and the company benefited from restructuring moves. It said UPS “will remain disciplined regarding shareholder rewards.”
However, S&P said, UPS is in a competitive industry that’s vulnerable to economic cycles.
The shares rose 8 cents to close Thursday at $63.43.
(This version CORRECTS day in final paragraph to Thursday)
