The ratings on Valcourt, Que.-based recreational products manufacturer Bombardier Recreational Products Inc. (BRP) reflect what Standard&Poor's Ratings Services views as the volatile demand for the company's products due to their discretionary nature, highly seasonal operating profits, and intense competition. BRP's revenue and profit both experienced sharp declines in the last economic cycle. While the company's revenue and EBITDA began improving in fiscal 2011 (ended Jan. 31), the increases were not nearly to the levels experienced before the recession. These factors are partially offset by the company's solid market position and credit protection measures for the ratings, brand equity, and well-established dealer network. BRP manufactures motorized recreational products including snowmobiles under the Ski-Doo and Lynx brand names, watercraft and
