FedEx Freight, the LTL spinoff of delivery company FedEx, will have a BBB- debt rating, one notch below the parent company’s BBB rating, making it an investment-grade rating. Moody’s has a Baa2 rating for FedEx. XPO, another LTL carrier, has non-investment grade ratings. FedEx Freight will start with a debt load due to a $4.3 billion dividend payment to FedEx. The spinoff is set for June 1 with a stable outlook. S&P Global noted FedEx Freight’s strong revenue and extensive coverage of U.S. zip codes, providing a competitive advantage in the LTL industry.

Read more at Yahoo Finance: FedEx Freight will begin life as an investment-grade credit