Moody’s lifts Doosan Bobcat view to positive

Moody's Investors Service said it revised Doosan Bobcat Inc.'s outlook to positive from stable.

The agency also said it affirmed the company’s B1 corporate family rating and Ba3 rating on the outstanding $951 million senior secured term loan co-borrowed by Clark Equipment Co. and Doosan Holdings Europe Ltd.

The rating on the senior secured term loan is based on the credit quality of their parent Doosan Bobcat, which broadly reflects the combined financials of the co-borrowers, Moody’s explained.

The positive outlook follows the company’s recent initial public offering, which will reduce the likelihood of it having to extend support to its parent Doosan group, the agency said.

The IPO also will have a minimal direct effect on Doosan Bobcat’s credit metrics given the cash inflow is very small relative to its consolidated reported debt of $1.44 billion at year-end 2016, Moody’s added.

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