The ratings on Montreal, Que.-based Bombardier Recreational Products Inc. (BRP) reflect the strong competition in the recreational products markets, and the volatile demand for the primary products. These factors are partially offset by BRP's market knowledge, the company's well established dealer network and brand names, and the stable margins and revenues gained from the parts and accessories component of this business. The competitive environment in the recreational product industry is challenging and demand is cyclical. BRP competes against well-established U.S.- and Japan-based competitors and continuous investment in new programs is required to maintain market share. Nevertheless, BRP's long history in the snowmobile and personal watercraft markets and strong customer loyalty to its brands has facilitated the company's leading development in
