S&P shifts Dometic Group view to stable

S&P said it revised Dometic Group AB’s view to stable from negative and affirmed its ratings, including the BB- issuer rating.

“We believe Dometic's credit metrics will stabilize at a level commensurate with the rating, thanks to resilient demand for the company's products on the back of progressively positive trends around staycations and outdoor activities,” S&P said in a press release.

“Customers still wary of international travel are turning to staycations, a trend that fits well with the company's product offering in the recreational vehicle and marine segments. We expect this demand to continue to strengthen Dometic's order book, supporting the company's sales growth in 2021 and resulting in stabilized credit metrics, with FFO to debt of about 20% in 2020 and 2021,” the agency said.

The agency said it forecasts Dometic's full-year adjusted free operating cash flow to reach SEK 1.3 billion-SEK 1.4 billion, increasing to SEK 1.6 billion-SEK 1.7 billion in 2021 as operating performance recovers. This compares with SEK 2.8 billion in 2019.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.