Research Update: Doosan Bobcat Inc. Upgraded To 'BB' On Revised Criteria; Term-Loan Rating Raised To 'BBB-'; Outlook Stable

We have completed our review of the ratings on Doosan Bobcat Inc. (DBI), which we placed under criteria observation (UCO) following the publication of our revised "Group Rating Methodology" on July 1, 2019. We view DBI as well insulated from its parent, Doosan Infracore Co. Ltd., considering its independent operations, significant minority shareholders, as well as track record of no negative intervention from the parent. On Aug. 9, 2019, we raised our long-term issuer credit rating on DBI to 'BB' from 'BB-'. At the same time, we revised the recovery rating on DBI's senior secured term loan due 2024 to '1' from '2' reflecting two recent prepayments totaling US$250 million. As a result of the above two actions, we raised

...- We have completed our review of the ratings on Doosan Bobcat Inc. (DBI), which we placed under criteria observation (UCO) following the publication of our revised "Group Rating Methodology" on July 1, 2019. - We view DBI as well insulated from its parent, Doosan Infracore Co. Ltd., considering its independent operations, significant minority shareholders, as well as track record of no negative intervention from the parent. - On Aug. 9, 2019, we raised our long-term issuer credit rating on DBI to '##' from '##-'. At the same time, we revised the recovery rating on DBI's senior secured term loan due 2024 to '1' from '2' reflecting two recent prepayments totaling US$250 million. As a result of the above two actions, we raised the issue rating on the senior secured term loan by two notches to '###-' from '##'. We have taken all the ratings off UCO. - The stable outlook on DBI reflects our expectation that the company's well-established market position and good cash flow will help it to maintain...

Research Update