Research Update: Doosan Bobcat Inc. 'BB' Ratings Affirmed; Outlook Stable; SACP Revised Upward

Doosan Bobcat Inc. (DBI) will likely maintain healthy financial metrics over the next 12-24 months, along with a still-robust operating performance. While the operating environment in the company's core North America construction equipment (CE) market has weakened, prudent debt management in recent years has increased the buffer in DBI's credit metrics to help it weather the difficulties. In addition, we expect the business restructuring and deleveraging of parent Doosan Enerbility Co. Ltd. (DE) to provide a buffer for the group's liquidity and financial profile over the next 12 months. On April 26, 2023, S&P Global Ratings affirmed its 'BB' long-term issuer credit rating on Korea-based DBI. At the same time, we maintained our recovery rating on the compact CE maker's

...- Doosan Bobcat Inc. (DBI) will likely maintain healthy financial metrics over the next 12-24 months, along with a still-robust operating performance. While the operating environment in the company's core North America construction equipment (CE) market has weakened, prudent debt management in recent years has increased the buffer in DBI's credit metrics to help it weather the difficulties. - In addition, we expect the business restructuring and deleveraging of parent Doosan Enerbility Co. Ltd. (DE) to provide a buffer for the group's liquidity and financial profile over the next 12 months. - On April 26, 2023, S&P Global Ratings affirmed its '##' long-term issuer credit rating on Korea-based DBI. At the same time, we maintained our recovery rating on the compact CE maker's term loan B (TLB) due 2029 and cash revolver facilities due 2027 at '3' and affirmed our '##' long-term issue ratings on these facilities. - The stable outlook on DBI reflects our expectation that the company will maintain...

Research Update