S&P lowers Camping World

S&P said it lowered the issuer credit rating on CWGS Enterprises LLC (Camping World) to B+ from BB-.

The agency also said it lowered the rating on the senior secured revolver and term loan two notches to BB- based on the lowered issuer credit rating and a revision of the recovery rating on this debt to 2 from 1.

S&P said it revised the recovery rating because of an assumed reduction to emergence valuation of recently acquired assets.

The company reported fourth-quarter and full-year 2018 operating results that were below expectations, the agency said.

The recreational vehicles industry also is experiencing excess inventory that is partly caused by a recent and forecast decline in retail RV sales, S&P said.

The agency said it responded by lowering the company's forecast for revenue and EBITDA and revised the forecast for adjusted debt-to-EBITDA to remain higher than 4x through 2020.

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