Moody's lowers Camping World

Moody's Investors Service said it downgraded CWGS Enterprises, LLC's (Camping World) corporate family rating to B2 from B1, its probability of default rating to B2-PD from B1-PD and its $1.4 billion senior secured term loan and its $65 million senior secured revolving credit facility ratings to B2 from B1. The speculative grade liquidity rating of SGL-3 is unchanged.

“The downgrades reflect Moody's expectation that Camping World's lease-adjusted debt/EBITDA will remain elevated at over 5x with EBIT/interest at around 1.9x by the end of 2024, as it recovers from discounting overstocked RVs in 2023 with limited gross margin expansion opportunities prospectively as consumer demand remains tempered by high-interest rates and persistent inflation. Moody's forward view also incorporates a higher level of SG&A expense as the company integrates planned RV dealership acquisitions,” the agency said in a press release.

The outlook is stable.

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