S&P revises Doosan Infracore credit profile

Standard & Poor’s said it affirmed the B+ long-term corporate credit rating on Doosan Infracore Bobcat Holdings Co. Ltd. and revised its stand-alone credit profile to BB- from B+.

The agency also said it affirmed the BB- rating with 2 recovery rating on the $1.2 billion senior secured term loan on subsidiaries, Doosan Infracore International Inc. and Doosan Holdings Europe Ltd., due in 2021.

The subsidiaries are co-borrowers of the term loan and Doosan Infracore will guarantee the loan.

The outlook is stable.

The stand-along rating was revised to reflect an expectation that the company will modestly improve its financial metrics over the next one to two years, predominantly due to steady demand growth in the U.S. construction equipment market, S&P said.

The company also is expected to modestly enhance its operating profitability in its European construction equipment business thanks to ongoing cost reductions, including closure of its manufacturing facility in Belgium in 2014, the agency said.

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