S&P moves Greenbrier view to negative

S&P said it revised its outlook for Greenbrier Cos. Inc. to negative from stable and affirmed the BB- issuer rating.

“Recent supply chain disruptions and operational inefficiencies are weighing on the company's EBITDA margins despite a ramp-up in production. Greenbrier's revenues increased nearly 70% over the last 12 months ended Nov. 30, 2022, compared to the prior 12 months, as the economy rebounded from the worst of the Covid-19 pandemic. However, the company did not enjoy the benefit of operating leverage on higher volumes primarily due to various supply chain issues,” S&P said in a press release.

The agency noted that Greenbrier’s narrower EBITDA margins, significant working capital outflows and steadily rising debt have kept its S&P Global Ratings-adjusted leverage above 5x.

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