Moody's pushes Deere outlook to positive

Moody's Investors Service said it changed the outlook for Deere & Co. to positive from stable and affirmed the A2 senior unsecured ratings.

“The affirmation of the ratings and change in outlook reflect Moody's expectation that agricultural equipment demand will remain robust through 2023 despite heightened macroeconomic concerns. Additionally, strong price realization, boosted by production bottlenecks limiting new equipment availability, should continue to offset high input costs. Production challenges have led to inflated work in process inventory levels and considerably weaker cash flow that should reverse over the next several quarters as parts availability improves and completed equipment can be delivered,” the agency said in a press release.

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