Bulletin: Doosan Bobcat Rating Remains On CreditWatch Despite Changes In Group Restructuring Plan

This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Sept. 4, 2024--Doosan Bobcat Inc.?s (DBI) group restructuring changes do not provide sufficient evidence for us to resolve our CreditWatch with negative implications, where we placed the rating on July 17, 2024. Doosan Robotics Inc. (DR)?s recent cancellation of its plan to take DBI private is positive. The cancellation removes the possibility that DBI (BB+/Watch Neg/--) would increase leverage to fund the transaction. It also preserves the ability of minority shareholders to influence the company?s direction. But given that DR may have significant capital needs to fund its growth investments, it may call on DBI for funding help. This will be to the detriment of DBI?s credit

...September 4, 2024 This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Sept. 4, 2024--Doosan Bobcat Inc.'s (DBI) group restructuring changes do not provide sufficient evidence for us to resolve our CreditWatch with negative implications, where we placed the rating on July 17, 2024. Doosan Robotics Inc. (DR)'s recent cancellation of its plan to take DBI private is positive. The cancellation removes the possibility that DBI (##+/Watch Neg/--) would increase leverage to fund the transaction. It also preserves the ability of minority shareholders to influence the company's direction. But given that DR may have significant capital needs to fund its growth investments, it may call on DBI for funding help. This will be to the detriment of DBI's credit measures. DBI has kept its plan to transfer a 46% stake that Doosan Enerbility Co. Ltd. (DE) holds in the Korea-based company of compact construction equipment to DR. We now expect to resolve our CreditWatch after the appraisal...

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