yrc worldwide

19
modeFinance srl VAT number 01168840328 E-mail: info@modefinance.com Web: www.modefinance.com Area Science Park, Padriciano 99 34149 Trieste, Italy Tel: +39 040 3755337 Fax: +39 040 3756741 modeFinance Edificio A AREA Science Park, Padriciano 99 34149 Trieste ITALY Tel: +39 040 3755337 Fax: +39 040 3756741 mail: info@modefinance.com web: www.modefinance.com Creditworthiness scale Extremely strong(AAA) Very strong(AA) Good(A) Adequate(BBB) Sufficient(BB) Weak(B) High danger(CCC) Pathological(CC) Extremely pathological(C) Non return(D) Not available YRC WORLDWIDE INC. Fundamental Credit Rating: C Company name YRC WORLDWIDE INC. Identification number US480948788 Country United States of America ZIP code and city 66211 - OVERLAND PARK Address P.O. Box 7563 Phone +1 913 696 6100 Web site www.yellowroadway.com Email [email protected] Legal form Not available NACE 2 Sector 4941 - Freight transport by road Listed Listed mF Credit limit Not eligible for credit on the base of the available informations 31/12/2010 31/12/2009 31/12/2008 Turnover (the) 3,244,006 3,381,246 6,424,089 Rating C CC CC Probability of default 57.00% 42.00% 42.00% Confidence Level 100% 100% 100% Solvency ratios Leverage ratio -28.49 17.14 7.24 Total asset/Total liabilties 0.96 1.06 1.14 Liquidity ratios Current ratio 0.77 0.85 0.84 Quick ratio 0.77 0.85 0.82 Profitability and economic equilibrium ratios Return on investement ROI (%) -9.28 -24.25 -26.87 Return on equity ROE (%) -336.21 -372.04 -202.80 Asset turnover 1.65 1.61 2.25 Interest paid weight -0.65 -0.22 -0.08 Gross Profit/Operating revenue 0.06 -0.06 0.07 Interest Coverage ratios EBIT interest coverage ratio -1.53 -4.50 -13.23

Upload: modefinance

Post on 19-Mar-2016

219 views

Category:

Documents


0 download

DESCRIPTION

modeFinance Credit Report of YRC Worldwide

TRANSCRIPT

Page 1: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

modeFinanceEdificio AAREA Science Park, Padriciano 9934149 TriesteITALY

Tel: +39 040 3755337Fax: +39 040 3756741

mail: [email protected]: www.modefinance.com

Creditworthiness scale

Extremely strong(AAA)Very strong(AA)Good(A)Adequate(BBB)Sufficient(BB)Weak(B)High danger(CCC)Pathological(CC)Extremely pathological(C)Non return(D)Not available

YRC WORLDWIDE INC.Fundamental Credit Rating: C

Company name YRC WORLDWIDE INC.Identification number US480948788Country United States of AmericaZIP code and city 66211 - OVERLAND PARKAddress P.O. Box 7563Phone +1 913 696 6100Web site www.yellowroadway.comEmail [email protected] form Not availableNACE 2 Sector 4941 - Freight transport by roadListed ListedmF Credit limit Not eligible for credit on the base of the available

informations

31/12/2010 31/12/2009 31/12/2008

Turnover (the) 3,244,006 3,381,246 6,424,089

Rating C CC CCProbability of default 57.00% 42.00% 42.00%Confidence Level 100% 100% 100%

Solvency ratiosLeverage ratio -28.49 17.14 7.24

Total asset/Total liabilties 0.96 1.06 1.14

Liquidity ratiosCurrent ratio 0.77 0.85 0.84Quick ratio 0.77 0.85 0.82

Profitability and economic equilibrium ratiosReturn on investement ROI (%) -9.28 -24.25 -26.87

Return on equity ROE (%) -336.21 -372.04 -202.80Asset turnover 1.65 1.61 2.25

Interest paid weight -0.65 -0.22 -0.08Gross Profit/Operating revenue 0.06 -0.06 0.07

Interest Coverage ratiosEBIT interest coverage ratio -1.53 -4.50 -13.23

Page 2: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

Sector Analysis

Company Healthy Balanced Vulnerable RiskySolvency ratios

Leverage ratio -28.49 0.69 2.09 5.68 -3.12Total asset/Total liabilties 0.96 2.45 1.48 1.15 0.98

Liquidity ratiosCurrent ratio 0.77 1.92 1.20 0.99 0.74Quick ratio 0.77 1.87 1.17 0.96 0.72

Profitability and economic equilibrium ratiosReturn on investement ROI (%) -9.28 13.88 4.92 0.77 -9.59

Return on equity ROE (%) -336.21 15.53 8.32 -1.41 -111.60Asset turnover 1.65 1.93 1.81 1.82 2.26

Interest paid weight -0.65 0.02 0.18 0.30 -0.13Gross Profit/Operating revenue 0.06 0.15 0.12 0.11 0.06

Interest Coverage ratiosEBIT interest coverage ratio -1.53 59.63 4.34 0.13 -5.40

Cash Conversion Cycle (days)Days Sales Of Inventory (DIO) 0 2 2 3 2Days Sales Outstanding (DSO) 37 47 52 55 50

Days Payable Outstanding (DPO) 12 21 25 30 36Cash Conversion Cycle (DIO + DSO - DPO) 25 33 32 31 22Numer of analyzed companies - 1,871 8,331 5,128 1,098(Average) Rating C A BB B CC

The sector has been chosen according to:international companies in the sector NACE 2 4941 with financial data of year 2009.

Page | 2

Page 3: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

Sector Analysis - Graphs

Page | 3

Page 4: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

Balance Sheet

BALANCE SHEET (th e) 31/12/2010 31/12/2009 31/12/2008Accounting practice Local GAAP Local GAAP Local GAAPExchange rate USD - EUR 0.74839 0.69416 0.71855Total assets 1,971,778 2,104,729 2,849,835Fixed assets 1,358,377 1,508,575 1,800,395Intangible fixed assets 104,419 111,347 132,765Tangible fixed assets 1,160,436 1,264,203 1,581,503Other fixed assets 93,522 133,024 86,126

Current assets 613,401 596,154 1,049,440Stocks 0 0 17,762Debtors 331,163 307,382 601,463Other current assets 282,238 288,773 430,216Cash & cash equivalent 107,033 67,880 233,778

Shareholders funds -71,728 116,056 345,945Capital 0 0 448Other shareholders funds -71,728 116,056 345,496Total liabilities 2,043,506 1,988,674 2,503,890Non current liabilities 1,242,509 1,287,696 1,251,727Long term debt 626,599 649,578 565,794Other non-current liabilities 615,910 638,119 685,933

Current liabilities 800,996 700,977 1,252,163Loans 166,796 136,837 298,427Creditors 110,097 107,366 239,930Other current liabilities 524,103 456,775 713,806

Total shareh. funds & liab. 1,971,778 2,104,729 2,849,835

NET DEBT (th e) 31/12/2010 31/12/2009 31/12/2008Short term debts 166,796 136,837 298,427Long term debt 626,599 649,578 565,794Cash & cash equivalent 107,033 67,880 233,778

Net debt 686,363 718,534 630,443

31/12/2010 31/12/2009 31/12/2008Working capital - - 379,295Net Current Assets -187,595 -104,823 -202,723

31/12/2010 31/12/2009 31/12/2008Days Sales Of Inventory (DIO) 0 0 1Days Sales Outstanding (DSO) 37 33 34Days Payable Outstanding (DPO) 12 12 14Cash Conversion Cycle (DIO + DSO - DPO) 25 21 21

Page | 4

Page 5: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

Income Statement

INCOME STATEMENT (th e) 31/12/2010 31/12/2009 31/12/2008Accounting practice Local GAAP Local GAAP Local GAAPExchange rate USD - EUR 0.74839 0.69416 0.71855Sales 3,244,006 3,381,246 6,424,089Revenues growth (%) -4.1 -47.4 -

Other revenues +/- variation in inventories andcontract in progress + Fixed assets own constructioncapitalized

0 0 0

Operating revenue / turnover 3,244,006 3,381,246 6,424,089Total operating costs 3,425,788 3,885,811 7,194,174Costs growth (%) -12 -41 -

Service costs - - -Material costs - - -Costs of employees - - -

EBITDA -20,035 -315,739 155,164Depreciation 161,748 188,825 925,248EBIT -181,783 -504,565 -770,084Financial P/L -120,268 -118,048 -53,767Financial revenue - - 3,085Financial expenses 120,268 118,048 56,852Interest paid 119,138 112,155 58,202

P/L before tax -302,051 -622,613 -823,852Extr. and other P/L -15,807 8,493 -Extr. and other revenue - - -Extr. and other expenses - - -

P/L before tax + Extr. and other P/L -317,857 -614,120 -Taxation -76,700 -182,342 -122,283P/L for period -241,157 -431,778 -701,569

31/12/2010 31/12/2009 31/12/2008Costs of Good Sold 3,050,810 3,598,593 5,989,217Gross Profit 193,196 -217,346 434,873Other Operating Expenses 374,978 287,218 1,204,957

31/12/2010 31/12/2009 31/12/2008Cash flow -79,410 -242,952 223,679Added value - - -

Page | 5

Page 6: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

Evolutions and trends

Page | 6

Page 7: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

Qualitative information

Full overview YRC Worldwide Inc. is a holding company with interests in the provision of transporta-tion services. The company was incorporated in 1983 and was formerly known as YellowRoadway Corporation. It has a registered head office in Overland Park, Kansas in the Unit-ed States of America. The company, through its brands including Yellow Transportation,Roadway, Reimer Express, USF, New Penn and YRC Logistics, provides a wide range ofasset and non - asset - based transportation services. The portfolio of brands represents acomprehensive array of services for the shipment of industrial, commercial and retail goodsdomestically and internationally. The company’s core purpose is to make a global com-merce work by connecting people, places, and information. The YRC Worldwide brandspartner with several organizations to provide safe transportation of hazardous materials.These organizations include the American Chemistry Council, Haz - Mat One, CooperativeHazardous Materials Enforcement Development program (COHMED) of the CommercialVehicle Safety Alliance (CVSA), and Chemtrec. The company also belongs to ResponsibleCare Partnership Program of the American Chemistry Council; and SmartWay TransportPartnership, a voluntary program between various transportation industry sectors and thefederal Environmental Protection Agency addresses key national concerns to improve en-ergy security and energy savings. The company is a recipient of 2006 Environmental Ex-cellence Award from the Environmental Protection Agency for significant improvements infuel economy and environmentally sensitive supply chain management strategies by Merid-ian IQ. The company operates technology centers in three primary locations: OverlandPark KS, Akron OH, and Chicago IL and employs technology approximately 66,000 peoplein the transportation and logistics industry. The company supports various organizationsand institutions including American Heart Association, whose mission is to build healthierlives, free of cardiovascular diseases and stroke; Christina’s Smile Children’s Dental Clinic,a program designed to deliver quality comprehensive charitable dental care to children inneed in the communities; Gifts In Kind International, the seventh - largest charity in theUS and a global leader in new products philanthropy; and Heart to Heart International, aleading global humanitarian organization that works to improve health and to respond tothe needs of disaster victims worldwide.

History Formerly known as Yellow Roadway Corporation.

Primary business line Holding company with interests in the provision of transportation services.

Secondary business line Not available.

Main activity Services.

Secondary activity Not available.

Main products and services Not available.

Size estimate Not available.

Page | 7

Page 8: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

Strategy, organization andpolicy

To make a global commerce work by connecting people, places, and information.

Strategic alliances American Chemistry Council; Haz - Mat One; Cooperative Hazardous Materials En-forcement Development program (COHMED) Of the Commercial Vehicle Safety Alliance(CVSA); Chemtrec.

Membership of a network Not available.

Main brand names Yellow Transportation; Roadway; Reimer Express; USF; New Penn; YRC Logistics.

Main domestic country United States Of America.

Main foreign countries orregions

Not available.

Main production sites Not available.

Main distribution sites Not available.

Main sales representationsites

Not available.

Main customers American Heart Association; Christina’s Smile Children’s Dental Clinic; Gifts In KindInternational; Heart to Heart International.

Auditor/Advisor/Banktype

KPMG LLP AuditorUMB Bank Transfer Agent

Boardfunction date of birth nationality

Mr William D Zollars Chairman of the Board, President, Chief ExecutiveOfficer

- -

Mr Dennis E Foster Director - -continued on next page ...

Page | 8

Page 9: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

function date of birth nationalityMr Eugene I Davis Director - -Mr John A Lamar Lead Director - -Mr Mark E Holliday Director - -Mr William L Trubeck Director - -Mrs Beverly K Goulet Director - -Mrs Marnie S Gordon Director - -Mrs Teresa Ghilarducci Director - -

Sharehoders (the first twenty shareholders ordered by Direct %)

CDI CORPRating: -

Country ISO code US Operating revenue (MIL $) 926NACE Rev. 2, Core code - Total Assets (MIL $) 375Direct % 5.32 Number of Employees 800Total % - Information date 2008/02

VANGUARD GROUP, INC. THE via its fundsRating: -

Country ISO code US Operating revenue (MIL $) 2,018NACE Rev. 2, Core code - Total Assets (MIL $) 1,830Direct % - Number of Employees 9,500Total % 3.74 Information date 2010/12

ZIMMERMAN JAMIE RACHEL via its fundsRating: -

Country ISO code - Operating revenue (MIL $) -NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % - Number of Employees -Total % 3.07 Information date 2010/09

PRIVATE MANAGEMENT GROUP INC, THE via its fundsRating: -

Country ISO code US Operating revenue (MIL $) 1NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % - Number of Employees 9Total % 2.21 Information date 2010/09

JP MORGAN CHASE & CO. via its fundsRating: -

Country ISO code US Operating revenue (MIL $) 100,434NACE Rev. 2, Core code - Total Assets (MIL $) 2,031,989Direct % - Number of Employees 222,316Total % 0.80 Information date 2010/09

Page | 9

Page 10: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

STATE OF CALIFORNIA via its fundsRating: -

Country ISO code US Operating revenue (MIL $) -NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % - Number of Employees -Total % 0.55 Information date 2010/12

WELLS FARGO & COMPANY via its fundsRating: -

Country ISO code US Operating revenue (MIL $) 84,431NACE Rev. 2, Core code - Total Assets (MIL $) 1,258,128Direct % - Number of Employees 272,200Total % 0.42 Information date 2010/09

FMR LLC via its fundsRating: -

Country ISO code US Operating revenue (MIL $) 3,823NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % - Number of Employees 41,050Total % 0.41 Information date 2010/09

PINNACLE HOLDINGS LLC via its fundsRating: -

Country ISO code US Operating revenue (MIL $) -NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % - Number of Employees -Total % 0.34 Information date 2010/09

GEODE CAPITAL MANAGEMENT, LLC via its fundsRating: -

Country ISO code US Operating revenue (MIL $) 0NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % - Number of Employees 2Total % 0.33 Information date 2010/09

BIRMIWAL ASSET MANAGEMENT INC via its fundsRating: -

Country ISO code US Operating revenue (MIL $) 0NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % - Number of Employees 1Total % 0.29 Information date 2010/09

GOLDMAN SACHS GROUP, INC via its fundsRating: -

Country ISO code US Operating revenue (MIL $) 42,893NACE Rev. 2, Core code - Total Assets (MIL $) 848,942Direct % - Number of Employees 32,500Total % 0.22 Information date 2010/09

Page | 10

Page 11: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

BANK OF AMERICA CORPORATION via its fundsRating: -

Country ISO code US Operating revenue (MIL $) 114,119NACE Rev. 2, Core code - Total Assets (MIL $) 2,223,299Direct % - Number of Employees 283,717Total % 0.18 Information date 2010/09

BANK OF NEW YORK MELLON CORPORATION via its fundsRating: -

Country ISO code US Operating revenue (MIL $) 13,056NACE Rev. 2, Core code - Total Assets (MIL $) 212,224Direct % - Number of Employees 42,200Total % 0.17 Information date 2010/12

GMT CAPITAL CORP. via its fundsRating: -

Country ISO code US Operating revenue (MIL $) 1NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % - Number of Employees 14Total % 0.17 Information date 2010/09

TIG ADVISORS, LLC via its fundsRating: -

Country ISO code US Operating revenue (MIL $) 0NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % - Number of Employees 2Total % 0.13 Information date 2010/09

FIRST NEW YORK SECURITIES LLC via its fundsRating: -

Country ISO code US Operating revenue (MIL $) 239NACE Rev. 2, Core code - Total Assets (MIL $) 653Direct % - Number of Employees -Total % 0.11 Information date 2010/12

Subsidiaries (the first twenty subsidiaries ordered by Direct %)

EXPRESS LANE SERVICE INCRating: -

Country ISO code US Operating revenue (MIL $) -NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % 100.00 Number of Employees -Total % 100.00 Information date 2008/12

Page | 11

Page 12: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

YELLOW ROADWAY RECEIVABLE FUNDING CORPORATIONRating: -

Country ISO code US Operating revenue (MIL $) -NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % 100.00 Number of Employees -Total % 100.00 Information date 2008/12

YRC ASSOCIATION SOLUTIONS INCRating: -

Country ISO code US Operating revenue (MIL $) -NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % 100.00 Number of Employees -Total % 100.00 Information date 2008/12

YRC ASSURANCE CO LTDRating: -

Country ISO code BM Operating revenue (MIL $) -NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % 100.00 Number of Employees -Total % 100.00 Information date 2008/12

YRC ENTERPRISE SOLUTIONS GROUP INCRating: -

Country ISO code US Operating revenue (MIL $) -NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % 100.00 Number of Employees -Total % 100.00 Information date 2008/12

YRC MORTGAGES LLCRating: -

Country ISO code US Operating revenue (MIL $) -NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % 100.00 Number of Employees -Total % 100.00 Information date 2008/12

GLOBE.COM LINES LLCRating: -

Country ISO code US Operating revenue (MIL $) -NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % - Number of Employees 3Total % MO Information date 2010/12

OPK INSURANCE CO. LTDRating: -

Country ISO code US Operating revenue (MIL $) -NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % MO Number of Employees 4Total % - Information date 2010/09

Page | 12

Page 13: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

REIMER EXPRESS LINES LTDRating: -

Country ISO code CA Operating revenue (MIL $) 243NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % MO Number of Employees 1,500Total % - Information date 2009/03

SHANGHAI JIAYU LOGISTICS LTDRating: -

Country ISO code CN Operating revenue (MIL $) -NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % - Number of Employees -Total % MO Information date 2008/08

USF CORPORATIONRating: -

Country ISO code US Operating revenue (MIL $) 2,395NACE Rev. 2, Core code - Total Assets (MIL $) 1,441Direct % MO Number of Employees 21,000Total % - Information date 2010/09

USF REDDAWAY INC.Rating: -

Country ISO code US Operating revenue (MIL $) -NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % - Number of Employees 2,700Total % MO Information date 2009/04

YELLOW CUSTOMER SOLUTIONS INCRating: -

Country ISO code US Operating revenue (MIL $) -NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % MO Number of Employees 18Total % - Information date 2010/11

YELLOW ROADWAY TECHNOLOGIES, INC.Rating: -

Country ISO code US Operating revenue (MIL $) 8,742NACE Rev. 2, Core code - Total Assets (MIL $) 5,734Direct % MO Number of Employees 350Total % - Information date 2010/04

YELLOW TRANSPORTATION OF ONTARIO INCRating: -

Country ISO code CA Operating revenue (MIL $) 62NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % MO Number of Employees 450Total % - Information date 2010/06

Page | 13

Page 14: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

YELLOW TRANSPORTATION, INC.Rating: -

Country ISO code US Operating revenue (MIL $) 3,390NACE Rev. 2, Core code - Total Assets (MIL $) 1,150Direct % MO Number of Employees 1,000Total % - Information date 2008/08

YRC ENTERPRISE SERVICES, INC.Rating: -

Country ISO code US Operating revenue (MIL $) 0NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % MO Number of Employees 24Total % - Information date 2010/02

YRC INC.Rating: -

Country ISO code US Operating revenue (MIL $) -NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % MO Number of Employees -Total % - Information date 2010/10

YRC INTERNATIONAL INVESTMENTS, INC.Rating: -

Country ISO code US Operating revenue (MIL $) 0NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % - Number of Employees 5Total % MO Information date 2010/09

YRC LOGISTICSRating: -

Country ISO code US Operating revenue (MIL $) 0NACE Rev. 2, Core code - Total Assets (MIL $) -Direct % MO Number of Employees 2Total % - Information date 2010/11

Page | 14

Page 15: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

MORE rating guide

General vision

A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor inrespect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors.

The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies byusing data included in financial statements.

The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model withthe purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applyingnewly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies.The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by takinginto account any attributes (such as sector and country) characterizing a firm.

The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows toprocess quality information. It induces a better understanding of a company s strength and weakness thanks to sophisticated datamining tools and taking into account the analysts knowledge.

The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observingevery aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, betterwill be the final rating.

This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a companyas: profitability, liquidity, solvency, interest coverage and efficiency.

Page | 15

Page 16: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

Rating scale

Rating class Rating Macro class Assessment

Healthy

The company’s capacity to meet its financial commitments is extremely strong. Thecompany shows an excellent economic and financial flow and fund equilibrium.AAA

The company has very strong creditworthiness. It also has a good capital structureand economic and financial equilibrium. Difference from ’AAA’ is slight.AA

The company has a high solvency. The company is however more susceptible to theadverse effects of changes in circumstances and economic conditions than companiesin higher rated categories.

A

Balanced

Capital structure and economic equilibrium are considered adequate. The company’scapacity to meet its financial commitments could be affected by serious unfavourableevents.

BBB

A company rated ’BB’ is more vulnerable than companies rated ’BBB’. Further-more the company faces major ongoing uncertainties or exposure to adverse business,financial, or economic conditions.

BB

Vulnerable

The company presents vulnerable signals with regard to its fundamentals. Adversebusiness, financial, or economic conditions will be likely to impair the company’scapacity or willingness to meet its financial commitments.

B

A company rated ’CCC’ has a dangerous disequilibrium on the capital structure andon its economic and financial fundamentals. Adverse market events and an inadequatemanagement could affect with high probability the company’s solvency.

CCC

Risky

The company shows signals of high vulnerability. In the event of adverse market andeconomic conditions, the company’s strong disequilibrium could increase.CC

The company shows considerable pathological situations. The company’s capacity tomeet its financial commitments is very low.C

The company has not any longer the capacity to meet its financial commitments.D

Page | 16

Page 17: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

Fundamental Credit Rating Ratios

Solvency ratiosLeverage ratio Measures the level of total liabilities of the company in comparison with equity.Assets to debt Indicates company s solvency. The company shows a level of deficit when the value

of this ratio is under one unit.Financial ratiosFixed Assets coverage ratio Only for holdings. It measures the capital structure i.e. whether a company covers

the fixed assets with long term capital.Liquidity ratios

Current ratio The current ratio measures whether a company has sufficient short-term assets tocover its short-term liabilities.

Quick ratio The quick ratio compares current liabilities only to those assets that can be readilyturned into cash.

Profitability and economic ratiosReturn on Investement(ROI) It measures the profitability of company investments without regard to the way the

investment is financed.Return on Equity(ROE) It measures the profitability of the equity.

Asset turnover It indicates the investments turnover with regard to sales. The level assumed fromthe ratio depends on the sector in which the company operates.

Profit margin It indicates the profitability of the sales.Interest coverage ratio

Interest Paid coverage Indicate the ability of the company to cover interest expenses through the economicmargins (Gross profit and EBIT) and through the cash flow from operating activities.

Page | 17

Page 18: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

mF Credit Limit

mF Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with theanalyzed company with an outlook of one year.modeFinance used the following values associated with the company analyzed while computing the credit limit:

• Size;

• Years in Business;

• Average number of suppliers;

• Liquidity of the company and the comparison with its sector;;

• The funds dedicated to be paid to suppliers;

• The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).

The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data.This value should be reviewed by paying attention at the Confidence Level value and by using other information such as otherbusiness information, news... etc; and private information such as the relationship with client, history of payments, guarantees andthe knowledge of the sector.

Probability of default and Confidence Level

In addition to the MORE rating, modeFinance also estimates the probability of default and provides a level of confidence. Theprobability of default is the degree of certainty (in quantitative terms) that the company will go into default.As the probability of default is strongly affected by the economic climate the company is operating in, companies in the same MOREclass will not necessarily have the same probability of default.The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:

Confidence =∑Available Information∑Total Information

The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability offinancial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to takeinto account for each company.For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data isprovided, 0%. This puts the MORE rating in a context for the user and aids interpretation.

Page | 18

Page 19: YRC Worldwide

modeFinance srlVAT number 01168840328

E-mail: [email protected]: www.modefinance.com

Area Science Park, Padriciano 9934149 Trieste, Italy

Tel: +39 040 3755337Fax: +39 040 3756741

NOTES

The present analysis was based on the company available financial statements as provided by Bureau Van Dijk Electronic Publishing- ORBIS database (lack of both Notes to financial statements and Report on operations).

DISCLAIMER

All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by anymeans, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance.The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings,conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primaryand secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liabilitywhatever for actions taken based on any information that may subsequently prove to be incorrect.

ContactsCompany modeFinanceProducts MORE ratingWhere AREA Science Park

34149 Trieste, via Padriciano 99 - ITALYInfo [email protected] www.modefinance.comPhone +39 040 3755337

Page | 19