Moody’s upgrades Brunswick earnings outlook - Trade Only Today

Moody’s upgrades Brunswick earnings outlook

Author:
Publish date:

Moody's Investors Service upgraded Brunswick Corp.'s corporate family rating to B1 from B2 because of expectations that its earnings will continue to improve in the near to mid-term amid stabilizing demand trends and a significantly lower cost structure.

The following ratings were also upgraded: Probability-of-default rating to B1 from B2; secured notes to Ba2 from Ba3; and unsecured notes to B3 from Caa1.

The outlook is stable.

“We believe that the combination of stable boating participation trends, the increasing age of licensed boats and fewer used boats for sale should help drive demand for new boats in the near to mid-term,” Kevin Cassidy, senior credit officer at Moody's Investors Service, said in a statement.

“Brunswick's significantly improved cost structure, health of its dealership network and stabilizing demand trends have led to much better earnings and credit metrics,” he added.

Brunswick stock opened Thursday at $19.44 per share.

Click here for the full release.

Related

E-nnovation Lab to expand at 2018 Metstrade show

The growing demand for hybrid and electric engines is becoming more apparent within the leisure marine market, prompting Metstrade to introduce the E-nnovation Lab platform for electric propulsion technology.

Aluminum, tow boats lead moderate growth in May

Boat registrations were up 2.1 percent in May in the main powerboat categories, and rose 3.2 percent in all categories, according to preliminary data from Statistical Surveys Inc., a Michigan company that tracks new boat registrations.

Retaliatory tariffs on boats to EU start today

The 25 percent tariff the EU announced Wednesday on U.S.-built boats kicks in today, and a 10 percent tariff on boats sold to Canada will start July 1, prompting boatbuilders to worry they will lose sales to those countries.