S&P shifts Commercial Vehicle view to stable

S&P said it revised Commercial Vehicle Group Inc.’s outlook to stable from negative and affirmed the B ratings on the company and its term loan. The loan’s 3 recovery rating, indicating meaningful (50%-70%; rounded estimate: 50%) recovery in default, is also unchanged.

“CVG's margins have recovered sequentially in the last two quarters, and we expect credit metrics to improve in 2021. Stronger sales driven by an ongoing recovery in the commercial vehicle market, as well as efforts to add customers in existing and new business segments, have helped the company to improve its credit metrics,” the agency said in a press release.

The outlook reflects the estimate CVG’s leverage will decrease below 4x on an S&P Global Ratings-adjusted basis in 2021 as demand further improves, S&P said.

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