S&P bumps Dometic view to positive

S&P said it revised its outlook for Dometic Group AB to positive from stable and affirmed the BB- long-term issuer and issue credit ratings on the group; the 3 recovery rating on its unsecured debt is unchanged, although the agency boosted the recovery prospects to 60% from 55%.

“We anticipate Dometic's credit metrics to materially improve in 2022.We expect the demand for the group's products will continue to drive organic revenue growth and allow it to sustain adjusted EBITDA margins of 16.5%-17.5% in 2021 and 2022. Furthermore, the full-year consolidation of 2021 acquisitions should propel material improvements of Dometic's credit metrics in 2022, with FFO to debt of more than 25% and FOCF to debt above 15%. We would view credit metrics at this level as commensurate with a higher rating,” S&P said in a press release.

The agency said it now forecasts revenue of about SEK 21 billion for 2021, with acquisitions contributing about SEK 2 billion. For the first time, Dometic’s top line, on a rolling 12-month basis ended Sept. 30, exceeded SEK 20 billion for the first time, reaching SEK 20.2 billion.

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