Moody’s trims Thor Industries

Moody’s Investors Service downgraded its ratings for Thor Industries, Inc., including the company’s corporate family rating and probability of default rating and the rating on the company’s senior secured term loan to B2 from Ba3. The speculative grade liquidity rating was downgraded to SGL-2 from SGL-1. The outlook is negative.

“The downgrades reflect Moody’s expectations that the Covid-19 crisis will result in severe disruptions to consumer spending over the coming quarters and this will lead to a pronounced drop in demand for recreational vehicles (RV) in both North America and Europe. The high price points and discretionary nature of RV’s make Thor particularly vulnerable to cyclical downturns and Moody’s expects near-term disruptions in consumer spending to coincide with Thor’s peak selling season,” said the agency in a press release.

Moody’s said it forecasts this will lead to significant sales and earnings pressures and an across the board weakening of key credit metrics.

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