topstockalerts
Oct 5, 8:49 PM
C.H. Robinson Worldwide faces credit-rating pressure after proposing a
$5.3 billion acquisition of freight-broker rival RXO. S&P Global Ratings revised C.H. Robinson’s outlook to negative from stable while affirming its BBB+ issuer rating.
The deal, expected to close in the first half of 2027, would be funded with cash, stock and
$3.5 billion of new debt. S&P expects the added leverage to temporarily push pro forma FFO-to-debt into the mid-to-high 20% range at closing, well below its 45% downside threshold.
C.H. Robinson plans to suspend share buybacks after Q3 2026 and direct projected free cash flow toward debt reduction, targeting roughly
$1.6 billion of debt repayment to restore FFO-to-debt to the mid-to-high 40% range by mid-2029.
The acquisition depends on generating
$300 million in net cost synergies within 24 months. About
$170 million is expected from lower-risk operational efficiencies.
$CHRW $RXO
