Moody’s changes REV to stable

Moody's Investors Service said it changed REV Group, Inc.’s outlook to stable from positive.

The agency also affirmed the company’s existing ratings, including the B1 corporate family rating, the B1-PD probability of default rating, the B1 rating on its $450 million asset-based revolving credit facility due 2022 and the SGL-3 speculative grade liquidity rating.

“The change in outlook to stable from positive reflects the time the company will likely need to implement some of the actions it is taking to address near-term cost and margin challenges,” Moody’s said in a news release.

“These headwinds include higher than anticipated steel and aluminum costs, chassis availability and negative product mix.

“Furthermore, elevated freight costs and working through restructuring actions are also considered in the ratings.”

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