Moody’s ups Thor Industries

Moody’s Investors Service said it upgraded Thor Industries, Inc.’s ratings, including the company’s corporate family rating to Ba3 from B1 and probability of default rating to Ba3-PD from B1 and the rating on the company’s senior secured term loan to Ba3 from B2. The agency also upgraded the speculative grade liquidity rating to SGL-1 from SGL-2.

“The upgrades reflect our expectation that consumer demand for recreational vehicles (RV) will remain strong, and that this demand combined with Thor’s current record backlog, will translate into significant revenue and earnings growth and an improving set of credit metrics in 2021,” said Eoin Roche, Moody’s lead analyst for Thor, in a press release.

The SGL-1 rating denotes the expectation of very good liquidity over the next 12 months. Moody’s said it forecasts robust cash generation during fiscal 2021, with free cash flow-to-debt approaching 20%.

The outlook is positive.

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