S&P Global Ratings revised the outlook on United Parcel Service Inc.'s issuer credit rating to negative from stable, citing slower-than-expected improvement in the company's credit measures.
The company's mounting pension obligations are expected to keep its credit metrics under pressure.
Ratings expects that the funds from operations-to-debt ratio will take longer than previously estimated to reach the mid- to high-30% area. In 2019, the FFO-to-adjusted-debt ratio is expected to be in the low-30% area.
The rating agency anticipates UPS' operating performance to remain strong in 2019, but softer export and GDP growth, combined with trade uncertainty, are likely to weigh on the company's growth.
Meanwhile, S&P affirmed the A+ issuer credit rating on UPS.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings.