Established culture of innovation Quality manufacturing, which has resulted in good brand equity and leading market shares Parts and accessories business is a source of stable, high-margin revenue High debt leverage and weak financial flexibility Cyclical demand with volatility related to the economy, weather, and shifting consumer preferences Potential margin volatility due to changes in demand and currency movements Strong competitive pressures from well-established Japanese and U.S. manufacturers The ratings on Valcourt, Que.-based Bombardier Recreational Products Inc. (BRP) reflect its significant debt leverage, volatile demand for the company's primary products, highly seasonal operating profits, and intense competition. These factors are partially offset by the company's solid market position, brand equity, well-established dealer network, and the stable margins and revenues of
