Research Update: Westinghouse Air Brake Technologies Corp. Downgraded To ?BBB-? On Higher Expected Leverage; Outlook Is Negative

S&P Global Ratings expects Westinghouse Air Brake Technologies Corp. (Wabtec) will slow its pace of deleveraging significantly due to the negative impact of the COVID-19 pandemic on demand for the company's products. As a result, we no longer believe the company's adjusted debt to EBITDA will improve to the mid-2x area by the end of 2020, but instead could rise to the high end of the 3x-4x range. Therefore, we are lowering the company's issuer credit rating to 'BBB-' from 'BBB'. At the same time, we are lowering the ratings on the company's senior unsecured debt to 'BBB-' from 'BBB'. The negative outlook reflects our view that we could lower the ratings further over the next 12-24 months if the

...- S&P Global Ratings expects Westinghouse Air Brake Technologies Corp. (Wabtec) will slow its pace of deleveraging significantly due to the negative impact of the COVID-19 pandemic on demand for the company's products. - As a result, we no longer believe the company's adjusted debt to EBITDA will improve to the mid-2x area by the end of 2020, but instead could rise to the high end of the 3x-4x range. - Therefore, we are lowering the company's issuer credit rating to '###-' from '###'. At the same time, we are lowering the ratings on the company's senior unsecured debt to '###-' from '###'. - The negative outlook reflects our view that we could lower the ratings further over the next 12-24 months if the length and severity of the recession is greater than we currently anticipate, leading to leverage above 4x....

Research Update