S&P shifts Harman view to stable

S&P said it revised Harman International Industries Inc.’s outlook to stable from negative and affirmed its A- ratings.

“We expect Harman's sales and profitability to improve as global light-vehicle demand recovers. Harman's revenue declined 9% in 2020 as vehicle production declined in all regions because of government-mandated shutdowns. Yet light-vehicle demand showed marked recovery in the second half of the year and, by the fourth quarter, sales growth was positive year over year,” the agency said in a press release.

S&P noted that Harman’s EBITDA beat its forecast.

The outlook reflects the view Harman will maintain metrics in line with expectations, implying FOCF to debt of at least 15% throughout the cycle. “We also assume Harman will remain a strategically important subsidiary of Samsung over the next two years,” S&P said.

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