Pilot remains ‘very strong’
Despite reports last week that Pilot Flying J is troubled by too many lawsuits and too much debt, a company spokesman insists the nation’s biggest truck stop chain remains a strong, ongoing company.
Moody’s Investors Service has put the Knoxville-based company on a watch list for a possible downgrade after federal agents raided Pilot’s headquarters in April. Moody’s change came after a half dozen trucking companies sued Pilot and three senior executives pleaded guilty to fraud charges for not delivering on promised fuel rebates.
Moody’s said Pilot’s ability to repay its $4 billion debt could be comprised if more trucking companies severe ties with Pilot or major penalties are levied against the company. Pilot’s debt is currently rated as Ba2, which Moody’s said “reflects the company’s relatively good debt protection measures, good liquidity, meaningful scale, geographic reach and relatively diverse profit stream.”
But Pilot’s relatively thin margins and the prospect of more legal or public relations problems could hurt the nearly $30 billion a year of sales generated by Pilot, which is primarily owned by Cleveland Browns owner Jimmy Haslam, the brother of Tennessee Gov. Bill Haslam.
Pilot Flying J spokesman Tom Ingram said “there are inaccuracies in the rating agencies’ numbers” but as a private company Pilot “is not going to elaborate.