Moody’s ups Harley-Davidson to A3

Moody's Investors Service said it upgraded the long-term debt rating of Harley-Davidson Financial Services, Inc. and Harley-Davidson Funding Corp. to A3 from Baa1 and affirmed the short-term rating at Prime-2.

The outlook is stable.

The ratings benefit from a support agreement provided by Harley-Davidson, Inc.

Moody’s said the upgrade reflects its expectation that Harley-Davidson will maintain operating and financial disciplines necessary to contend with the considerable cyclicality and the high consumer sensitivity characteristic of the high-end motorcycle market.

The company's operating strengths include: (a) A world recognized brand name that is aggressively defended; (b) market leadership which has grown to exceed 50% in the U.S.; (c) an operating margin that the agency expects will estimate 18% next year and that compares favorably with that of other companies at the A3 rating level; (d) free cash flow exceeding $500 million; and (e) a labor contact that affords the company considerable flexibility to adjust headcount as needed.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.