Moody's ups Thor, rates notes B1

Moody's Investors Service said it upgraded its ratings for Thor Industries, Inc., including the corporate family rating to Ba2 from Ba3 and probability of default rating to Ba2-PD from Ba3-PD. Concurrently, Moody's upgraded the ratings on the company's senior secured term loans to Ba2 from Ba3. The agency also assigned a B1 rating to the new senior unsecured notes.

The speculative grade liquidity rating remains unchanged at SGL-1. The agency changed the outlook to stable from positive.

"Thor continues to post strong operating results with a healthy sales and earnings outlook over the next 12 months. Robust cash generation also provides significant financial flexibility to absorb any potential market slowdown in 2023 or beyond," said Eoin Roche, Moody's lead analyst for the company, in a press release. "Thor's leading market positions, significant scale and portfolio of well-known brands, coupled with a conservative financial policy are all supportive of the Ba2 corporate family rating".

The proceeds together with cash on hand, will be used to repay a portion of the borrowings on the asset-based revolving credit facility and for the payment of fees and expenses.

The revised outlook reflects Thor’s order backlog and continued consumer demand for recreational vehicles, the agency said.

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