Research Update: Weber LLC Liquidity Revised To Less Than Adequate On New Sources To Fund Working Capital; Ratings Affirmed

U.S. based grill seller Weber LLC secured a three-year, $200 million accounts receivable securitization facility in December 2023, adding additional sources of liquidity to fund its working capital investment needed for the upcoming summer selling season in 2024. We view the additional liquidity and its existing cash and availability under its revolving credit facility as sufficient to fund Weber's liquidity uses for the next 12 months. As such, we revised our liquidity assessment to less than adequate from weak. We also affirmed all of our ratings on the company, including our 'CCC+' issuer credit rating. We assigned a new management and governance (M&G) assessment of moderately negative to Weber. This assignment follows the January 7 publication of S&P Global Ratings'

...- U.S. based grill seller Weber LLC secured a three-year, $200 million accounts receivable securitization facility in December 2023, adding additional sources of liquidity to fund its working capital investment needed for the upcoming summer selling season in 2024. - We view the additional liquidity and its existing cash and availability under its revolving credit facility as sufficient to fund Weber's liquidity uses for the next 12 months. As such, we revised our liquidity assessment to less than adequate from weak. - We also affirmed all of our ratings on the company, including our '###+' issuer credit rating. - We assigned a new management and governance (M&G) assessment of moderately negative to Weber. This assignment follows the January 7 publication of S&P Global Ratings' revised criteria for evaluating the credit risks presented by an entity's M&G framework. - The negative outlook reflects the possibility that we could lower our ratings on Weber over the next 12 months if we envision...

Research Update