Research Update: Range Parent Inc. (Robertshaw Controls Co.) Rating Lowered To 'CCC+'; Outlook Negative

Range Parent Inc. is the indirect parent holding company of home appliance- and electric vehicle-components maker Robertshaw Controls Co. We believe demand for Robertshaw's products is likely to decline moderately--at least over the next several months--because of the economic fallout from the COVID-19 pandemic. In addition, global financial conditions have deteriorated substantially. The company has a solid level of cash and remaining revolver availability following its draw-down during the quarter ended March 31, 2020, but headroom under the financial covenant on its European term loan is tight. As a result, we are lowering our issuer credit on the company to 'CCC+' from 'B-' and revising the outlook to negative. At the same time, we are lowering our issue-level ratings on

...- Range Parent Inc. is the indirect parent holding company of home appliance- and electric vehicle-components maker Robertshaw Controls Co. - We believe demand for Robertshaw's products is likely to decline moderately--at least over the next several months--because of the economic fallout from the COVID-19 pandemic. In addition, global financial conditions have deteriorated substantially. - The company has a solid level of cash and remaining revolver availability following its draw-down during the quarter ended March 31, 2020, but headroom under the financial covenant on its European term loan is tight. - As a result, we are lowering our issuer credit on the company to '###+' from 'B-' and revising the outlook to negative. - At the same time, we are lowering our issue-level ratings on the company's first-lien credit facilities to '###+' from 'B-' and on its second-lien term loan to '###-' from '###'. - The negative outlook reflects the potential for a lower rating over the next few quarters...

Research Update