Moody's downgrades FleetPride's debt rating due to high leverage and weak liquidity

From Yahoo Finance: 2025-06-09 11:20:00

Aftermarket truck parts distributor FleetPride’s debt rating has been downgraded by Moody’s to Caa1 from B3, with a negative outlook. S&P Global Ratings has a B- rating on FleetPride, one notch higher than Moody’s. Moody’s cited high leverage, low interest coverage, weak liquidity, and looming debt maturities as reasons for the downgrade.
Moody’s also criticized FleetPride’s governance, highlighting “aggressive financial strategies and risk management practices” that have led to high financial leverage and weak liquidity. The company faces ongoing negative free cash flow and a need to refinance a $225 million second-lien term loan before November 5, 2026.
FleetPride’s revenue was $1.8 billion in the 12 months ended March 31, but Moody’s highlighted the company’s high debt-to-EBITDA ratio and unsustainable capital structure. Despite challenges in the truck market, FleetPride is outperforming industry trends with growth driven by smaller accounts, e-commerce, and private label offerings.
Moody’s described FleetPride as distributing brand name heavy-duty vehicle parts through five distribution centers and over 300 branches nationwide. The company also supplies a limited range of remanufactured products and repair services. FleetPride is owned by private equity company American Securities, and the company has not responded to requests for comment on the downgrade.



Read more at Yahoo Finance: Parts supplier FleetPride’s debt rating cut by Moody’s, outlook still negative