Research Update: Traeger Inc. Outlook Revised To Positive On Improving Credit Metrics; 'CCC+' Rating Affirmed

Salt Lake City-based outdoor grill manufacturer Traeger Inc. is performing better than our expectations and, despite continued challenging demand for grills, we believe Traeger has weathered the worst of the retailer inventory destocking that has plagued its recent operating performance. Its credit metrics continue to improve, including EBITDA interest coverage of 1.8x for the 12 months ended Sept. 30, 2023, compared with 1.1x in prior quarters. As such, we affirmed all of our ratings on Traeger, including our 'CCC+' issuer credit rating, and revised our outlook to positive from negative. We also revised our liquidity assessment on the company to adequate from less than adequate, reflecting its positive free cash flow generation and sufficient liquidity sources to fund next key

...- Salt Lake City-based outdoor grill manufacturer Traeger Inc. is performing better than our expectations and, despite continued challenging demand for grills, we believe Traeger has weathered the worst of the retailer inventory destocking that has plagued its recent operating performance. - Its credit metrics continue to improve, including EBITDA interest coverage of 1.8x for the 12 months ended Sept. 30, 2023, compared with 1.1x in prior quarters. - As such, we affirmed all of our ratings on Traeger, including our '###+' issuer credit rating, and revised our outlook to positive from negative. - We also revised our liquidity assessment on the company to adequate from less than adequate, reflecting its positive free cash flow generation and sufficient liquidity sources to fund next key selling season's working capital needs. - The positive outlook reflects the possibility that we could raise our ratings on Traeger over the next 12 months if the company can at least sustain credit metrics...

Research Update