S&P cuts Dometic

S&P said it downgraded its ratings for Dometic Group AB, its senior unsecured bank facilities and senior unsecured notes to BB- from BB. The agency also placed the ratings on CreditWatch with negative implications.

“The recessionary environment will likely result in weaker credit metrics in 2020 than in our prior base case. Due to coronavirus outbreak, we anticipate significantly weaker demand for Dometic's products in the near term given their discretionary nature. RV demand has remained weak over the last year, and with the current recessionary environment, we believe consumers will defer purchases of big-ticket items,” said S&P in a press release.

S&P said it forecasts Dometic’s revenue declining at least 10% in 2020.

The agency said it sees resolving the CreditWatch as it learns more about the effect of the coronavirus and Dometic’s ability to meet its covenants.

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