Research Update: Range Parent Inc. Outlook Revised To Positive On Increasing Sales, Ratings Affirmed

Range Parent Inc. is the indirect parent holding company of home appliance and electric vehicle component maker Robertshaw Controls Co. The demand for Robertshaw's products has rebounded from the trough it experienced during the COVID-19 pandemic on a good expansion across multiple business lines. However, cost inflation, supply chain tightness, and the spread of the delta variant continue to pose a risk to its performance. In addition, the company increased its headroom under the financial covenant on its European term loan and has adequate liquidity. Therefore, we revised our outlook on Range to positive from negative and affirmed all of our ratings, including our 'CCC+' issuer credit rating. The positive outlook reflects the potential that we will raise our rating

...- Range Parent Inc. is the indirect parent holding company of home appliance and electric vehicle component maker Robertshaw Controls Co. The demand for Robertshaw's products has rebounded from the trough it experienced during the COVID-19 pandemic on a good expansion across multiple business lines. However, cost inflation, supply chain tightness, and the spread of the delta variant continue to pose a risk to its performance. - In addition, the company increased its headroom under the financial covenant on its European term loan and has adequate liquidity. - Therefore, we revised our outlook on Range to positive from negative and affirmed all of our ratings, including our '###+' issuer credit rating. - The positive outlook reflects the potential that we will raise our rating on the company over the next few quarters if its macroeconomic risks subside, it reduces its debt leverage to a sustainable level through earnings growth or debt repayment, and we believe it will likely maintain appropriate...

Research Update