S&P rates Callaway loan BB-

S&P said it assigned a BB- issuer credit rating to Callaway Golf Co., along with a BB- rating and 3 recovery rating to a proposed term loan.

The 3 recovery rating reflects 50% to 70% expected default recovery.

The ratings reflect the company's moderate leverage, participation in the highly competitive golf equipment industry, discretionary nature of golf equipment sales, relatively high profit volatility and limited revenue visibility, S&P said.

The golf market is mature and has faced challenging participation trends over the last decade, the agency said.

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