S&P changes CWGS view to positive

S&P said it changed the outlook for CWGS Enterprises LLC to positive from negative, but the ratings remain on CreditWatch with negative implications.

“We revised the CreditWatch implications to positive from negative, reflecting rising demand for recreation vehicles (RVs), which consumers perceive as a safe and attractive product compared to other leisure and travel options during the Covid-19 pandemic. This perception has resulted in robust revenue and EBITDA generation in the second quarter of this year and the likelihood of a favorable comparison to our previous forecast on CWGS,” S&P said in a press release.

The company’s total revenue increased 9% in the second quarter, which consisted of new and used units. “EBITDA more than doubled in the second quarter year over year, supported by an expanded gross margin due to higher RV retail volumes, as well as good performance in Good Sam Services and finance and insurance revenue,” S&P said.

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