Generac (GNRC) Ratings, Outlook Affirmed by S&P
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
S&P Global Ratings said it affirmed its 'BB-' corporate credit rating on Generac Power Systems Inc (NYSE: GNRC). The outlook is stable. We also affirmed our 'BB-' issue-level rating on the company's senior secured debt and revised the recovery rating on the debt to '4' from '3', indicating our expectation of substantial (30%-50%; upper half of the range) recovery in the event of a default.
"The stable rating outlook reflects our expectation that the company will continue to generate positive free cash flow while maintaining total leverage below 4x for 2017," said S&P Global Ratings credit analyst Chiza Vitta.
We could lower the rating if credit measures weakened from current levels such that leverage was likely to be maintained above 4x. This could occur if Generac pursued acquisitions or share repurchases such that the level of free cash flow applied to debt repayments resulted in credit measures staying flat or weakening.
Based on our view of the company's fair business risk profile, and acquisition-driven growth strategy, we believe an upgrade is unlikely in the next year. However, we could raise the rating if leverage were sustained below 3x and FFO to debt were sustained above 30%, commensurate with an intermediate financial risk profile.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Moody's Assigns 'Ba3' Rating to Ritchie Bros. Auctioneers (RBA); Outlook Stable
- Oppenheimer Cuts Price Target on Workday (WDAY) Following 3Q; Reiterates Outperform
- S&P Assigns 'BB' Corp. Rating to Ritchie Bros. Auctioneers (RBA); Outlook is Stable
Create E-mail Alert Related CategoriesCredit Ratings
Related EntitiesStandard & Poor's, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!