S&P rates Whirlpool notes BBB

S&P said it assigned its BBB issue-level rating to Whirlpool Corp.'s proposed senior unsecured notes (final amount and maturity to be determined).

Whirlpool intends to use the proceeds to improve its liquidity by repaying a portion of the borrowings under its $3.5 billion revolving credit facility due 2024. As of March 31, 2020, Whirlpool had about $2.2 billion of outstanding under the facility.

“We believe there is minimal subordination risk for these proposed notes and the existing unsecured debt issued by group parent Whirlpool Corp., despite the $2.6 billion of subsidiary debt in the company's capital structure because almost all of the subsidiary debt was issued by captive finance subsidiaries with no material operating assets,” said S&P in a press release.

All of S&P’s ratings on Whirlpool, including the BBB issuer credit rating, are unchanged, the agency said.

The outlook is negative.

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