Moody’s has cut the debt rating of chassis supplier TRAC Intermodal to B3 from B2 due to a heavy debt load and weak demand for services. S&P Global Ratings has also had a negative outlook on TRAC since January. TRAC’s revenue was approximately $482 million in the 12 months ended September 30, with a cash balance expected to be between $5 million and $10 million. Moody’s expects TRAC to maintain ample liquidity under a $1 billion asset-based lending facility. To improve its debt rating, Moody’s looks for a debt/EBITDA ratio below 5.5x and consistently positive free cash flow.

Read more at Yahoo Finance: Heavy debt load, flat container shipments lead Moody’s to cut TRAC rating