S&P nicks McLaren

S&P lowered its ratings for McLaren Group Ltd. and its senior secured notes to CCC from CCC+. The 3 recovery rating on the notes is unchanged. The agency also placed the ratings on CreditWatch with negative implications.

“We revised down our forecast of McLaren's wholesale volumes for 2022 and 2023 after its third-quarter 2022 results and our expectations into next year. McLaren’s wholesale volumes totaled 1,359 vehicles in the nine months to the end of September 2022, 13% below the same period in 2021. As a result, we reduced our expectation for wholesales in 2022 to close to 2,000 vehicles in 2022, from above 3,300, and closer to 3,000 vehicles in 2023, from more than 4,000 that we previously expected,” the agency said in a press release.

Additionally, S&P said it understands McLaren is discussing options around recapitalization, with a potential transaction to be announced in first-quarter 2023.

The CreditWatch indicates a possible downgrade if cash balances continue to weaken and if it does not see added “shareholder support as imminent,” the agency said.

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