S&P Global Cuts Odyssey Logistics Rating to CCC+ and Warns of 2027 Default
SPGI•S&P Global Ratings cut Odyssey Logistics’ issuer credit and first-lien debt rating to CCC+ from B- and warned of potential default by 2027. Odyssey has a $125M revolver maturing July 2027 and a $490M term loan due October 2027 alongside $27M negative free cash flow.
1. S&P Global Rating Reduction
S&P Global Ratings cut Odyssey Logistics’ issuer credit and senior secured first-lien debt rating to CCC+ from B-, placing it seven notches below investment grade and aligning with Moody’s Caa1 classification.
2. Negative Outlook and Default Warning
The agency assigned a negative outlook and highlighted the possibility of default in 2027 absent improved earnings, signaling further downgrade potential if operating losses persist.
3. Upcoming Debt Maturities
Odyssey has drawn $9 million on its $125 million revolving credit facility maturing July 2027 and must address a $490 million term loan due October 2027, amplifying refinancing challenges.
4. Cash Flow Pressure
Soft freight demand, depressed trucking rates and rising costs produced operating losses over two years, culminating in negative $27 million free cash flow last year—a trend projected through 2026.
