S&P moves Meritor view to stable

S&P said it revised Meritor Inc.’s outlook to stable from negative and affirmed its BB issuer and BB- unsecured debt ratings. The recovery rating on the debt remains 5.

“Industry truck production is rebounding from 2020 lows. Our forecast this year sees North America heavy-duty truck production surging by more than 20% and smaller gains in Europe and lighter-duty trucks in North America. Driven by these growth assumptions, we foresee Meritor's debt to EBITDA declining to near 3x this year and below 3x in 2022 (reflecting S&P debt adjustments for leases, post-retirement obligations and accounts receivables securitization),” the agency said in a press release.

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