S&P cuts Winnebago

S&P said it downgraded Winnebago Industries Inc.’s secured term loan to BB from BB+ and the company’s rating to B+ from BB-.

“The downgrade to B+ reflects our updated assumption that leverage could increase to about 4x in fiscal 2020 (ending August) due to production suspensions at Winnebago leading into the busy spring selling season. The rating reflects our revised assumption that Winnebago's revenue and cash flow may decline significantly at least during the spring selling season because of a production suspension,” said S&P in a press release.

The outlook is negative.

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