S&P raises Great Outdoors Group

S&P said it raised its ratings for Great Outdoors Group LLC and its $4.5 billion term loan to BB- from B+. The recovery rating remains 3(50%). The agency also revised the outlook to positive.

“Our ratings upgrade and outlook revision reflects better-than-expected sales and EBITDA generation, contributing to a meaningful improvement in credit metrics. We believe that Great Outdoor performance has benefitted from consumers exploring outdoor and sports-related hobbies during the pandemic and its solid execution under both the Cabela's and Bass Pro banners, which were combined in 2017 in a leveraged transaction,” S&P said in a press release.

Great Outdoors plans to acquire Sportsman’s Wearhouse for nearly $800 million.

The outlook reflects the potential for an upgrade over the next 12 months if the company sustains less aggressive credit metrics, including leverage under 4x on sustained basis, and the Sportsman's acquisition integration is on track, S&P said.

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