Velocity Vehicles debt rating slashed for 2nd time in 3 months

Velocity Vehicles, a nationwide supplier of motortruck income and service, had its indebtedness standing chopped 2 notches by Moody’s past week, a larger-than-usual simplification a fewer months aft a akin two-step simplification by a competing agency.

While a chopped of 2 notches astatine 1 clip is not unprecedented, it is often a motion of rapidly weakening finances.

The caller standing of B3 from Moody’s is considered equivalent to a B- standing from S&P Global Ratings.  S&P Global has had that standing connected Velocity Vehicles since December, erstwhile similar Moody’s it reduced its standing by 2 notches successful 1 idiosyncratic action.

Both ratings are six notches little than the cutoff that marks investment-grade indebtedness from non-investment people debt.

Moody’s affirmed its Ba3 indebtedness standing connected Velocity Vehicles successful October 2024. But it did truthful portion changing the company’s outlook to antagonistic from stable, often a precursor to a ratings reduction.

The consequent simplification came successful May 2025, erstwhile the caller standing connected the institution was acceptable astatine B1, down 1 notch from Ba3. With the determination announced past week, the scorecard is that Velocity Vehicles has seen its indebtedness standing downgraded 3 notches successful little than 1 twelvemonth astatine Moody’s.

A akin but somewhat way occurred with S&P. Velocity Vehicles was archetypal assigned a BB- standing from S&P Global Ratings successful May 2024. That was chopped to B+ successful June 2025, and past reduced 2 notches to B- successful December.

“The downgrade reflects Velocity Vehicles’ weaker than expected operating show and net that has resulted successful a worldly deterioration successful recognition metrics,” Moody’s said successful its report.

Velocity Vehicles is bulk owned by Cranemere, a backstage equity institution with a assortment of holdings. Its different trucking-focused institution successful its portfolio is Crossroads Equipment Lease and Finance.

A petition for remark to a typical from Cranemere had not been responded to by work time.

Revenue is disclosed

While the indebtedness ratings reports of the ratings agencies seldom disclose profitability information, they bash occasionally disclose gross figures. Moody’s said for the 12 months ending September 30, Velocity Vehicles gross was astir $3.57 billion.

As a constituent of contrast, publicly-traded Rush Enterprises (NASDAQ: RUSHA), which besides has a web of motortruck dealerships, closed 2025 with gross of $7.4 billion.

On the Cranemere site, Velocity Vehicles is described arsenic having 78 locations worldwide for dealerships and leasing. It was founded successful 1998 and has been portion of Cranemere’s portfolio since 2019.

The Moody’s study was besides indirectly captious of Cranemere. It said the little indebtedness standing besides was driven by “governance considerations, peculiarly Velocity Vehicle’s bulk backstage ownership nether affiliates of..Cranemere..moderated successful portion by worldly number ownership by founders and management.”