S&P views American Trailer negatively

S&P said it changed its outlook for American Trailer World Corp. to negative from stable and affirmed all ratings, including its B senior secured ratings.

We expect reduced demand in the trailer market in 2023. During 2021 and 2022, numerous secular trends led to an increase in trailer demand, including the expansion in the number of pickups on the road that can tow a trailer, the substitution of trailers for traditional driving dump and gooseneck sales, and some pull-forward sales as new models were released.

“However, the demand for ATW's trailers began declining in the third quarter of 2022, including a 39% drop in its professional-grade trailer unit volumes and a 53% drop in its consumer-grade trailer unit volumes from their respective peaks in 2021, as its network of dealers destocked their inventory in anticipation of a worsening macroeconomic environment,” S&P said in a press release.

The agency said it forecasts ATW will post record lower EBITDA driving its S&P Global Ratings-adjusted leverage to increase toward the mid-6x area, which is the downgrade threshold for the current rating, from about 5.9x at Sept. 30.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.