Research Update: Whirlpool Corp. 'BBB' Rating Affirmed; Outlook Negative

U.S.-based large appliance manufacturer Whirlpool Corp. is tracking well below our original profit and credit metric expectations since acquiring InSinkErator, which it purchased primarily with debt, shortly after the end of highly favorable industry conditions. However, we still believe Whirlpool can improve credit metrics in 2024 including reducing S&P Global Ratings-adjusted leverage below our 3.5x downgrade threshold. This could occur primarily by paying down debt with cash flow and via the net proceeds from selling down its ownership stake in its Indian subsidiary, closing the proposed EMEA joint venture transaction, and driving moderate profit improvement. We affirmed all of our ratings on the company, including our 'BBB' long-term and 'A-2' short-term issuer credit ratings. The negative outlook reflects the potential

...- U.S.-based large appliance manufacturer Whirlpool Corp. is tracking well below our original profit and credit metric expectations since acquiring InSinkErator, which it purchased primarily with debt, shortly after the end of highly favorable industry conditions. - However, we still believe Whirlpool can improve credit metrics in 2024 including reducing S&P Global Ratings-adjusted leverage below our 3.5x downgrade threshold. This could occur primarily by paying down debt with cash flow and via the net proceeds from selling down its ownership stake in its Indian subsidiary, closing the proposed EMEA joint venture transaction, and driving moderate profit improvement. - We affirmed all of our ratings on the company, including our '###' long-term and 'A-2' short-term issuer credit ratings. - The negative outlook reflects the potential for a lower rating at any time over the next year if we unfavorably reassess the business risk or if we believe the company will be unable to reach our base-case...

Research Update