...Fitch Ratings has affirmed Brunswick Corporation's (BC) Long-Term Issuer Default Rating at `BBB' and revised the Rating Outlook to Negative from Stable. The Negative Outlook reflects increased challenges in the current macro environment for BC, particularly in enhancing operational flexibility, managing costs, rebalancing inventory, and allocating capital. Fitch- calculated EBITDA gross leverage rose to 2.9x at year-end (YE) 2024, and we expect it to rise further in 2025 before declining toward the negative sensitivity threshold of 2.0x over the next 24 months. Fitch could downgrade the ratings if BC experiences prolonged significant underperformance or allocates capital away from leverage reduction. The affirmation reflects BC's improved business mix and profitability, supported by higher contributions from the aftermarket business tied to boating activities, a market-leading propulsion position and strong financial flexibility. BC's free cash flow (FCF) margin above 5% and cash flow from...
