S&P upgrades Navico

S&P said it upgraded Navico Group’s issuer rating to CCC from CCC-, citing improved liquidity.

“We expect Navico's liquidity coverage ratio could increase to, and potentially exceed, 1x in the next 12 months from July 2020 underpinned by its operational improvement. This is much better than our previous (April 2020) expectation of 0.5x partly because of weak second-quarter results, with a 10.7% revenue decline stemming from competition and Covid-19-related lockdowns,” S&P said in a press release.

Navico's sales rose by more than 20% from June to August, after the second-quarter drop. However, “We expect revenue growth will be at least flat in the next 12 months on the back of economic recovery, although customer spending on recreational marine electronics remains uncertain,” the agency said.

The outlook is positive.

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