Standard & Poor's Ratings Services revised its rating outlook on Brunswick Corp. from negative to stable. Ratings on the company, including the B- corporate credit rating, were affirmed.
"The outlook revision is based on our expectation that Brunswick's liquidity will be sufficient to carry it at least through 2010," Standard & Poor's credit analyst Andy Liu said in a statement.
As of Oct. 3, Brunswick had $624 million of cash and cash equivalents and about $120 million of borrowing availability under its asset-back revolving credit facilities. These liquidity sources should be sufficient for operating needs in the coming year, according to Standard & Poor's.
The B- corporate credit rating reflects the sharp decline in Brunswick's profitability because of difficult recreational marine conditions and decreased prospects for a substantial industry turnaround in the intermediate term, Standard and Poor's said.