S&P affirms Dometic Group

S&P said it affirmed its BB long-term corporate credit rating on Dometic Group. The outlook remains stable.

At the same time, the agency affirmed its BB issue rating on Dometic's SEK 4.7 billion senior unsecured bank facilities. The recovery rating on these facilities is unchanged at 3, indicating an expectation of meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a payment default.

S&P said the affirmation follows Dometic's announcement that it has agreed to acquire SeaStar Solutions, a leading provider of vessel control systems and aftermarket products to the leisure marine industry. The purchase price is $875 million, which will be financed via committed bank facilities and cash.

“We understand that management estimates the transaction will result in debt to EBITDA increasing to about 3.3x on a pro forma basis, up from about 1.3x on Sept. 30, 2017,” S&P said in a news release.

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