UPS Faces Credit Downgrade as Financial Pressures Mount

S&P Global has delivered a significant blow to logistics titan UPS, shifting its credit outlook from stable to negative. The revised assessment reflects mounting concerns about the company’s financial resilience amid challenging market conditions.

The rating agency’s decision stems from worrying financial metrics that show a clear deterioration. UPS’s ratio of operating cash flow to debt plummeted to just 33.1% in the third quarter. Looking ahead to the full year 2025, S&P projects this critical measure will decline further to approximately 31%, falling substantially below the agency’s threshold requirements.

Compounding these cash flow challenges, the company’s debt position has expanded beyond previous Read more...