Moody’s upgrades Brunswick Corp. rating
LAKE FOREST, Ill. — Moody’s Investors Service has upgraded Brunswick Corp.’s speculative-grade rating due to the company’s potential for greater demand and improved cost structure.
Moody’s also noted stronger earnings on a sales rebound. Other signs for potential improvement include aging licensed boats and fewer used boat sales, which could drive demand.
“Brunswick’s significantly improved cost structure, health of its dealership network and stabilizing demand trends have led to much better earnings and credit metrics,” Moody’s analyst Kevin Cassidy said.
Moody’s now rates Brunswick at B1, which is four notches below investment-grade. Its outlook is stable and Moody’s expects earnings to improve. A Wall Street Journal summary notes that, “Moody’s said the company’s junk-grade rating reflects the highly discretionary nature of pleasure boats and other marine products, which puts the company at risk should the economy soften again.”
Standard & Poor’s Ratings Services upgraded Brunswick ratings two notches in April, and now gives the company a B+ rating, which is equivalent with Moody’s new rating.
The stock has gained 33 percent over the past 12 months.
To read more, go to: Moody’s Lifts Brunswick Credit Ratings On Improving Boat Demand
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