UPS says it is changing the way it manages its finances, allowing the company to take on more debt as well as greater flexibility for what it says could be greater investment in the future.

UPS says the change in capital structure is aimed at increasing shareholder value, a sore point at a company whose stock price on Wall Street has lagged behind that of its main competition. It also will give UPS greater freedom for "selective acquisitions" and "greater investment in the business."

The shift is the first significant move by the company since Scott Davis, the longtime chief financial officer, replaced Michael Eskew as chairman and CEO.

The company has historically carried a strong balance sheet, with billions of dollars in cash. But UPS recently struck an agreement with the Teamsters under which the company is paying $6.2 billion to the Central States Pension Fund to remove UPS from the multi-employer plan.

Under the new policy, UPS intends to manage its balance sheet to a target debt ratio within a range of 50-to-60 percent funds-from-operations-to-total-debt. Previously, there was no stated metric, the company said in a statement.

The first action the board took to implement the policy was to authorize an immediate increase in the amount of funds available for stock repurchases from approximately $2 billion to $10 billion over the next 24 months.

Standard & Poor's Ratings Services responded to the announcement by lowering its corporate credit and senior debt ratings on UPS from 'AAA' to 'AA-'. S&P also removed UPS from CreditWatch.

"The rating actions follow the company's announcement that it will pursue a less conservative financial policy that will result in more debt leverage in the capital structure," said Standard & Poor's credit analyst Lisa Jenkins.