S&P shifts RV Retailer view to negative

S&P said it changed its outlook for RV Retailer Intermediate Holdings LLC to negative from stable and affirmed all ratings, including the B+ issuer rating.

“As a result of a steeper decline in retail unit sales, lower average selling prices, and compressed margins, we now forecast that RV Retailer Intermediate Holdings LLC will end fiscal 2023 with S&P Global Ratings-adjusted leverage of around 7x-7.5x compared to our 5x downgrade threshold at the current B+ issuer credit rating,” S&P said in a press release.

The agency noted that added inventory, flooding at some dealerships and rebranding efforts, which it does not see recurring next year, hurt RV Retailer’s EBITDA in 2023.

The negative outlook captures the spike in leverage above the 5x downgrade threshold over the next few quarters, S&P said.

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