Research Update: Doosan Bobcat Upgraded To 'BB+' From 'BB' On Robust Profitability And Solid Financial Metrics; Outlook Stable

Doosan Bobcat Inc. (DBI) is likely to maintain its strong financial metrics over the next 12-24 months despite an anticipated moderation in its operating performance. We expect DBI's disciplined financial policy to enable it to generate strong free cash flows and effectively weather fluctuations in demand amid macroeconomic uncertainties. We also believe the group credit profile on the parent company, Doosan Enerbility Co. Ltd. (DE), has improved. Strong contribution from consolidating DBI, along with continued growth in its stand-alone business, will likely support DE's credit metrics over the next one to two years. On April 29, 2024, S&P Global Ratings raised its long-term issuer credit rating on Korea-based DBI to 'BB+' from 'BB'. At the same time, we raised our

...- Doosan Bobcat Inc. (DBI) is likely to maintain its strong financial metrics over the next 12-24 months despite an anticipated moderation in its operating performance. We expect DBI's disciplined financial policy to enable it to generate strong free cash flows and effectively weather fluctuations in demand amid macroeconomic uncertainties. - We also believe the group credit profile on the parent company, Doosan Enerbility Co. Ltd. (DE), has improved. Strong contribution from consolidating DBI, along with continued growth in its stand-alone business, will likely support DE's credit metrics over the next one to two years. - On April 29, 2024, S&P Global Ratings raised its long-term issuer credit rating on Korea-based DBI to '##+' from '##'. At the same time, we raised our long-term issue ratings to '##+', based on a recovery rating of '3', on DBI's term loan B (TLB) due 2029. - The stable outlook on DBI reflects our expectation that the company will maintain its robust profitability and...

Research Update