waltermasoni
Caribbean Trader
Harley-Davidson Inc. Ratings Removed From CreditWatch Negative And Lowered To 'BBB+' From 'A-'; Outlook Negative
- 23-Aug-2018 12:43 EDT
- We have completed our review of U.S. motorcycle manufacturer
Harley-Davidson Inc.'s recently announced plan to accelerate certain
strategy initiatives in order to increase demand for its motorcycles and
increase the number of Harley-Davidson riders. We believe Harley's
accelerated strategy partly reflects prolonged softness and negative
demographic trends in the U.S. motorcycle industry. - We are lowering our issuer credit rating on Harley to 'BBB+' from 'A-',
reflecting several ongoing headwinds that Harley faces, including sales
and shipment declines, challenging consumer and demographic trends,
stagnant motorcycle participation in the U.S., and higher costs due to
restructuring and tariffs. It is our view that the strategy acceleration
plan adds incremental execution risk in the near term, even though the
plan could increase demand over the longer term. - The negative outlook reflects our view that retail sales and shipments
could continue to decline, especially in the U.S., which is Harley's
largest market, and that this would represent a continued deterioration
in its business.
