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.