Moody’s revises Fender view to stable

Moody’s Investors Service said it revised Fender Musical Instruments Corp.’s outlook to stable from negative.

The agency affirmed Fender’s B1 corporate family rating, B1-PD probability of default rating, and B2 $200 million outstanding senior secured term loan rating. The company’s $85 million asset-based credit facility is not rated.

“The revision to a stable outlook and rating affirmation considers that customer demand across all of Fenders product lines has improved on a quarterly year-over-year basis. Moody’s expects sustained good demand for guitars and related products into 2021 with more individuals pursuing leisure activities close to home, and that as a result the company will continue to generate positive free cash flow and maintain moderate leverage and very good liquidity,” stated Keith Foley, a Moody’s senior vice president, in a press release.

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