Hi gang, Rick Ostler here from North American Waterway bringing you Bayliner Boats along with news and views from the boating industry. Moody's Investors Service said recently it has downgraded the long-term debt of recreational equipment maker Brunswick Corp. on concerns for the health of the U.S. marine industry.
Brunswick's performance is not expected to improve
Moody's cut the company's ratings from Baa2 to Baa3, the agency's lowest investment-grade designation. Brunswick's performance is not expected to significantly improve in the near term and a $700 million total revenue decrease to around $5 billion is a possibility, Moody's said.
Downturn in the marine market
"The downgrade reflects our view that the downturn in the marine market will continue into the foreseeable future, and is worse than our previous expectations, as consumer spending continues to deteriorate due to the ongoing credit market and housing market crises as well as high energy and food costs," Kevin Cassidy, senior credit officer, said in a statement.
Brunswick's commercial paper rating was downgraded to Prime-3 from Prime-2. The outlook is "Negative."Among Brunswick's boat brands are Bayliner, Cabo Yachts, Boston Whaler, Valiant, Sea Ray and Hatteras.Shares fell 32 cents, or 3.2 percent, to $9.68 in morning trading. Thanks to Moody's cuts investment-grade rating of Brunswick for this.
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