Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTJohn KingstonThu, June 4, 2026 at 1:00 PM GMT+2 5 min readOdyssey Logistics has had its debt rating cut by S&P Global Ratings, but it’s a move that brings that agency in line with what its chief competitor did late last year.But more starkly, S&P Global’s report on its rating reduction goes so far as to raise the possibility of an Odyssey default in 2027. .S&P Global Ratings (NYSE: SPGI) late last month cut its rating on Odyssey to CCC+ from B-. That rating will apply to its issuer credit rating–essentially the ratings agency’s overall rating for the company–as well as a senior secured first-lien debt.S&P Global also hit Odyssey with a negative outlook, suggesting conditions are in place for a further downgrade barring a turnaround.With its move, S&P Global now has Odyssey at a debt level that is considered equivalent to that of Moody’s (NYSE: MCO). That agency cut its rating on Odyssey in November to Caa1. That level is considered equivalent to the S&P ratings of CCC+.Moody’s reduced Odyssey’s debt rating twice in a three-month span in 2025.Closer to default grade than investment gradeBoth agencies’ ratings are deep in speculative territory, seven notches under the cutoff line between investment and non-investment grade debt.But the ratings are only five notches above the grades they would give to a company considered in default.Odyssey is unique among 3PLs in that it has publicly-traded debt even though it is nowhere near being among the largest brokerages, nor is its stock publicly traded.Privately-held Echo Global Logistics, one of the largest 3PLs, has publicly-traded debt and had been a publicly-traded stock before being bought by a private equity company. C.H. Robinson (NASDAQ: CHRW) and RXO (NYSE: RXO) are both publicly traded in equity and debt markets.According to S&P, the debt burden at Odyssey continues to be a problem.“We believe ongoing earnings weakness will impair Odyssey’s ability to refinance upcoming debt maturities,” S&P Global said in its analysis.Obligations upcomingOdyssey faces maturity in a $125 million revolving credit facility in July 2027, though so far the company has only drawn $9 million on that, according to S&P.It also has a term loan of $490 million that matures in October 2027.“Multiple years of soft freight demand, depressed trucking rates, and rising costs have contributed to reported operating losses over the past two years, which we expect will continue in 2026 and 2027,” S&P Global said.Free cash flow has been negative since 2023 and was negative $27 million last year, S&P said. The agency added that was “a trend we expect to persist through 2026.”Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info