The ratings on Valcourt, Que.-based recreational products manufacturer Bombardier Recreational Products Inc. (BRP) reflect Standard&Poor's Ratings Services view of the company's "weak" business risk profile and "aggressive" financial risk profile (as our criteria define the terms). We base our business risk assessment on the volatile demand for the company's products due to their discretionary nature, which led to sharp declines in revenue and profit in the last recession, and intense competition. These factors are partially offset by what we consider BRP's solid market position in the recreational products industry, improved operating performance, and well-established dealer network. Our financial risk assessment is based on the company's aggressive financial policy and our expectation of weak credit protection measures. BRP manufactures
