S&P stabilizes American Trailer view

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

“We forecast S&P Global Ratings-adjusted leverage will remain in the mid-5x area in 2024 as ATW charts out a return to revenue growth. ATW increased its EBITDA margin despite a 24% year-over-year revenue decline in the first nine months of 2023 due to demand pull-forward in 2021 and 2022, channel destocking, and the effects on demand from higher interest rates. This was due to its ability to hold price, achieve savings through cost-out initiatives, and the benefit of lower material and freight costs,” S&P said in a press release.

The agency said it expects mid-single-digit percent revenue growth.

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