Ratings On Doosan Bobcat Inc. Affirmed At 'B+'; Outlook Remains Stable

We expect DBI to maintain its stable operating performance over the next 12 months mainly due to steady demand in the U.S. compact construction equipment market. We expect the company will generate positive free cash flows over the next one to two years, given its moderate capital expenditure levels, and may use it to repay some of its debt. We are affirming our 'B+' long-term corporate credit rating on DBI. We are also affirming our 'BB-' issue rating on the senior secured term loan with a recovery rating of '2' that DBI is guaranteeing. The stable outlook on DBI reflects our expectation the company will maintain stable operating performance and modestly improve its financial metrics and that the parent DI

...+ We expect DBI to maintain its stable operating performance over the next 12 months mainly due to steady demand in the U.S. compact construction equipment market. + We expect the company will generate positive free cash flows over the next one to two years, given its moderate capital expenditure levels, and may use it to repay some of its debt. + We are affirming our 'B+' long-term corporate credit rating on DBI. We are also affirming our '##-' issue rating on the senior secured term loan with a recovery rating of '2' that DBI is guaranteeing. + The stable outlook on DBI reflects our expectation the company will maintain stable operating performance and modestly improve its financial metrics and that the parent DI group is unlikely to see significant weakening of liquidity over the next 12 months. HONG KONG (Standard & Poor's) April 26, 2016--Standard & Poor's Ratings Services today said it has affirmed its 'B+' long-term corporate credit rating on Doosan Bobcat Inc. (DBI), a Korea-based...

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