Research Update: Whirlpool Corp. Outlook Revised To Stable From Negative On Healthy Appliance Demand; 'BBB' Rating Affirmed

U.S.-based Whirlpool Corp.'s profitability rebounded substantially in the second half of 2020, resulting in S&P Global Ratings' adjusted leverage improving to around 2x. S&P Global Ratings believes demand for the company's home appliances will remain satisfactory in 2021, particularly during the first half of the year, as the company works through its elevated backlog and housing demand remains positive. Replacement demand should pick up over the next few years following heavy appliance use in 2020 and because an increased number of appliances purchased in the recovery following the 2008 global financial crisis are approaching the end of their approximately 10-year useful lives. We believe the company should be able to absorb or pass through most of the expected input-cost increases

...- U.S.-based Whirlpool Corp.'s profitability rebounded substantially in the second half of 2020, resulting in S&P Global Ratings' adjusted leverage improving to around 2x. - S&P Global Ratings believes demand for the company's home appliances will remain satisfactory in 2021, particularly during the first half of the year, as the company works through its elevated backlog and housing demand remains positive. - Replacement demand should pick up over the next few years following heavy appliance use in 2020 and because an increased number of appliances purchased in the recovery following the 2008 global financial crisis are approaching the end of their approximately 10-year useful lives. We believe the company should be able to absorb or pass through most of the expected input-cost increases on the horizon with only moderate margin erosion considering its hedging policies and track record. - We are affirming all our ratings on the company, including our '###' issuer credit rating, revising...

Research Update