Moody’s boosts Brunswick credit rating

Posted on

Moody’s Investors Services recently upgraded Brunswick Corp.’s Corporate Family Rating to Ba3 from B1 due to “significant enhancements in its operating performance and credit metrics and Moody’s expectation that there will be further improvement.”

The outlook is stable.

“We believe that the continuing demand for pontoon and aluminum boats, the increasing age of licensed boats and fewer used boats for sale will help drive demand for new fiberglass boats in the future,” Moody’s senior credit officer Kevin Cassidy said in a statement. “Brunswick’s improved cost structure, commitment to debt repayment and stabilizing marine demand trends have led to a meaningful improvement in earnings and credit metrics.”

The announcement comes on the heels of Standard & Poor’s decision to raise Brunswick’s credit rating from B+ to BB-.

In advance of Brunswick’s first-quarter earnings report, scheduled for release Thursday, Wells Fargo Securities’ Tim Conder said, “[Brunswick] remains well-positioned to gain domestic boat share against weakened competitors in boats and international share in diesel and outboard engines.

“While we expect Q1 2012 could be challenged from a topline perspective (absence of Sealine revenues, Q1 2011 large Life Fitness order, FX and reduction of sterndrive engines related to plant consolidation) potential upside could come from small boat shipments and outboard engines,” Conder added.

The bottom line, he said, “We would continue building positions in [Brunswick] shares ahead of Q1 2012 results.”

Brunswick stock opened today at $25.50 a share. Its 52-week high and low are $27.70 and $13.19.

Welcome to TradeOnlyToday’s premium content! To continue reading, please register now, for access to 10 free stories per month. Or subscribe, for unlimited access to all TradeOnlyToday content!

Click here to Register ... it's free!

Basic subscription: Registered members get free access to 10 premium content stories each month!

Not a member yet? Click here to Register!

Already a member? Click here to Login!

Subscribe ... for unlimited access!

Individual subscription: $29 for unlimited site access for one year.

Small Business subscription: $140 for unlimited site access for up to 10 members of a company for one year.

Corporate subscription: $300 for unlimited site access for all members of a company for one year.

You may close this dialog after seconds.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments Policy.

Vote Today

Will you be attending IBEX and the Fort Lauderdale International Boat Show?

View Results

Loading ... Loading ...

Search Boats for Sale

Length
Year
Price

Login to Trade Only Today

Lost Password