Research Update: Doosan Bobcat Outlook Revised To Stable From Negative On Parent's Improved Financials And Liquidity; Ratings Affirmed

We expect Doosan Bobcat Inc. (DBI) to generate steady profits over the next 12-24 months on the back of its strong position in the U.S. compact construction equipment market with ongoing good demand. Parent Doosan Heavy Industries&Construction Co. Ltd. (DHIC) has lower liquidity and refinancing risks following restructuring efforts to reduce debt. It also maintains steady relationships with Korea's policy banks. On March 7, 2022, S&P Global Ratings revised our rating outlook on DBI to stable from negative. This is based on significant progress in DHIC group's restructuring and deleveraging measures and our expectation of robust profitability and financial metrics for DBI over the next 12 months. We affirmed our 'BB' long-term issuer credit rating on DBI. At

...- We expect Doosan Bobcat Inc. (DBI) to generate steady profits over the next 12-24 months on the back of its strong position in the U.S. compact construction equipment market with ongoing good demand. - Parent Doosan Heavy Industries & Construction Co. Ltd. (DHIC) has lower liquidity and refinancing risks following restructuring efforts to reduce debt. It also maintains steady relationships with Korea's policy banks. - On March 7, 2022, S&P Global Ratings revised our rating outlook on DBI to stable from negative. This is based on significant progress in DHIC group's restructuring and deleveraging measures and our expectation of robust profitability and financial metrics for DBI over the next 12 months. - We affirmed our '##' long-term issuer credit rating on DBI. At the same time, we maintained our recovery rating on the Korea-based compact construction equipment maker's senior secured debt at '3' and affirmed our '##' long-term issue ratings on the senior secured debts....

Research Update