Moody's trims Manitowoc

Moody's Investors Service said it downgraded the ratings of the Manitowoc Co., Inc., including the company's corporate family rating to B3 from B2, the probability of default to B3-PD from B2-PD and rating on the company's $300 million of senior secured second-lien notes due 2026 to B3 from B2. The speculative grade liquidity rating remains SGL-3.

"Manitowoc's downgrade to B3 reflects our expectation that revenue and profitability will weaken beyond our previous expectations owing to considerable end market weakness. Moreover, financial leverage could double with debt-to-EBITDA exceeding 10 times at year-end 2020, up from 4.9 times for the twelve months ended June 30, 2020, and this measure could remain elevated for an extended period," said Brian Silver, a Moody's vice-president and lead analyst for Manitowoc, in a press release.

Moody’s revised the outlook to stable from negative. The outlook reflects Moody's forecast that Manitowoc's profitability will weaken significantly in 2020 and is likely to remain under pressure for the foreseeable future. “However, liquidity will remain adequate supported by at least $200 million of liquidity at all times,” Moody’s said.

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