Deterioration in credit protection measures due to weak operating performance Limited financing flexibility, including financial covenant concerns 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 recreational products manufacturer 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 financial covenant concerns. In addition, competition remains intense within the industry. BRP manufactures motorized recreational products including: snowmobiles under the Ski-Doo and Lynx brand names, watercraft and
