Moody's ups Winnebago Industries

Moody's Investors Service said it upgraded its ratings for Winnebago Industries, Inc., including the corporate family rating to Ba3 from B1 and probability of default rating to Ba3-PD from B1-PD.

Concurrently, the agency raised the ratings on the company's senior secured notes to Ba3 from B1, and the speculative grade liquidity rating remains unchanged at SGL-1. Moody’s also changed the outlook to stable from positive.

"The upgrades follow Winnebago's on-going strong operational performance and reflect our expectation of continued strength in retail demand for recreational vehicles (RVs) and ensuing strength in the company's financial performance over the next 12-18 months," said Eoin Roche, Moody's lead analyst for Winnebago, in a press release.

"We expect record backlog and low dealer inventories to support robust earnings, strong free cash generation and a well-positioned set of key credit metrics which provide significant financial flexibility to absorb a potential slowdown in 2023 or beyond," added Roche.

The stable outlook reflects consumer demand for RVs, which the agency said it sees continuing into 2022.

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