New York, August 22, 2012 -- Moody's Investors Service affirmed JHCI Acquisition, Inc.'s (JHCI) ratings including its B3 Corporate Family Rating (CFR) but changed the rating outlook to negative from stable. The change in outlook is based on the upcoming expiration of the company's undrawn revolving credit facility due June 2013 and the increased likelihood that the company's leverage metrics could remain elevated due to Moody's expectation that the pace of near-term U.S. economic growth will remain slow.

JHCI's earnings and operating margins have been lower than anticipated largely due to softer domestic macroeconomic conditions. In addition, debt balances increased moderately in 2012 to support equipment debt financed capital expenditures. It is unlikely that a meaningful amount of cash will be used in the intermediate term to improve leverage metrics absent a refinancing that would address its lack of access to the revolver because of covenant restrictions as well as upcoming maturities over the next two years. JHCI is not reliant on its revolving credit facility, but if the facility expires, part of the company's excess cash balances, above amounts required to run day-to-day operations, would likely be needed to fund letters of credit that are currently outstanding under the revolver. Excess cash balances remain a key supporting factor for the B3 rating given JHCI's lack of access to external liquidity.

The following ratings were affirmed (with updated LGD assessments):

Corporate Family Rating, at B3

Probability of Default Rating, at B3

Senior Secured Revolving Credit Facility, at B1 (LGD-2, 26%) from (LGD-3, 32%)

Senior Secured Second Lien Term Loan, at B1 (LGD-2, 26%) from (LGD-3, 32%)

Senior Secured Second Lien Term Loan, at Caa2 (LGD-5, 79%) from (LGD-5, 82%)

RATINGS RATIONALE

The B3 corporate family rating reflects the company's highly levered capital structure, modest interest coverage and high cash balances. Meaningful debt reduction is not anticipated as the company's strong cash balances are needed to support its liquidity requirements.

The B3 rating continues to be supported by the long-term nature of dedicated customer contracts, the company's focus on relatively stable, consumer facing end-markets, a balance between its asset and non-asset operations and a history of positive free cash flow generation and high cash balances. Meaningful fleet purchases resulted in negative free cash flow for the last twelve month period ended June 30, 2012. Moody's expects free cash flow to revert back to its positive trend over the coming 12-18 months due to the absence of expenditures incurred to modernize the company's fleet in 2012. Operating margins are expected to moderately improve due to a combination of the company's more fuel efficient fleet that would also be anticipated to require less maintenance expense going forward and a greater contribution from the higher margin bolt-on acquisitions made in Asia in 2011. However, in Moody's opinion, the slow rate of expected U.S. macroeconomic growth will make meaningful credit metric improvement more challenging .

Ratings could be downgraded if the company's liquidity position deteriorates including cash balances declining from current levels, credit metrics weakening such that Moody's adjusted debt/EBITDA exceeds 7.0x and/or interest coverage falls well below 1.0 times.

The outlook could be stabilized if the company addresses the upcoming maturity of its revolver due June 2013 together with the maturity if its first lien secured term loan due June 2014. Upward ratings momentum is unlikely over the next year given the company's highly leveraged capital structure. A ratings upgrade would be considered if, in addition to strengthening the company's liquidity profile, JHCI uses cash flow to pay down debt such that Moody's adjusted debt/EBITDA improves to and is sustained below 6.0 times.

JHCI's ratings were assigned by evaluating factors that Moody's considers relevant to the credit profile of the issuer, such as the company's (i) business risk and competitive position compared with others within the industry; (ii) capital structure and financial risk; (iii) projected performance over the near to intermediate term; and (iv) management's track record and tolerance for risk. Moody's compared these attributes against other issuers both within and outside JHCI's core industry and believes JHCI's ratings are comparable to those of other issuers with similar credit risk. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA, published June 2009.

JHCI is a wholly-owned subsidiary of JHCI Holdings, Inc., the vehicle majority owned by Oak Hill Capital Partners, created to effect the acquisition of Jacobson Holding Co. and the 2007 merger of Arnold Logistics, LLC (together Jacobson). JHCI operates its businesses using the Jacobson Companies name.

Jacobson Companies, headquartered in Des Moines, Iowa, is a leading national third-party logistics company that provides value added warehousing, packaging, contract manufacturing, staffing, contract logistics, transportation and freight management services.

REGULATORY DISCLOSURES

The Global Scale Credit Ratings on this press release that are issued by one of Moody's affiliates outside the EU are endorsed by Moody's Investors Service Ltd., One Canada Square, Canary Wharf, London E 14 5FA, UK, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that has issued a particular Credit Rating is available on www.moodys.com.

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Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history. The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

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Jadijhe (Gigi) Adamo Analyst Corporate Finance Group Moody'sInvestors Service, Inc.250 Greenwich StreetNew York, NY 10007 U.S.A. JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653Alexandra S. Parker MD - Corporate Finance Corporate Finance Group JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653 Releasing Office: Moody's Investors Service, Inc.250 Greenwich StreetNew York, NY 10007 U.S.A. JOURNALISTS: 212-553-0376 SUBSCRIBERS: 212-553-1653(C) 2012 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved.

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