Fitch rates Whirlpool notes BBB

Fitch Ratings said rated Whirlpool Corp.’s planned senior unsecured notes BBB and revised its outlook to negative from stable.

The agency also affirmed the company's ratings, including the long-term issuer default rating and unsecured debt ratings at BBB.

Whirlpool plans to use the proceeds to repay, at maturity, $250 million of its 3.7% senior unsecured notes due March 1, and excess proceeds, if any, for general corporate purposes.

“The revision of the outlook to negative reflects Fitch's expectations that EBITDA leverage will remain elevated and above the negative rating sensitivity of 2.8x for Whirlpool's BBB LT IDR through at least 2024, before declining below this level in 2025 and 2026 from EBITDA growth and debt reduction. Fitch had previously projected EBITDA leverage to decline to 2.5x at the end of 2023 driven by margin expansion to 12.5%-13.5%. Fitch now expects the company to achieve this level of EBITDA margin in 2024 and 2025,” the agency said in a statement.

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