Deterioration in credit protection measures due to significant declines in revenue and EBITDA, negative free cash flow, and elevated debt Limited financial flexibility; need for an equity cure to comply with financial covenants at April 30, 2009 Cyclical demand with volatility related to the economy, weather, and shifting consumer preferences Strong competitive pressures from well-established Japanese and U.S. manufacturers Quality manufacturing, resulting in good brand equity and leading market shares Geographically diversified The ratings on Valcourt, Que.-based Bombardier Recreational Products Inc. (BRP) reflect Standard&Poor's Ratings Services' assessment of the company's weak financial performance, including significant declines in revenue and EBITDA, negative free cash flow, limited financial flexibility, and the need for an equity cure to comply with the
