Moody's downgrades Bombardier Rec

Moody's Investors Service said it downgraded Bombardier Recreational Products Inc.'s corporate family and probability-of-default ratings to B3 from B1, senior secured bank revolving credit facility to B1 (LGD2, 25%) from Ba2 (LGD2, 26%) and senior secured bank term loan to B3 (LGD4, 51%) from B1 (LGD4, 54%).

The outlook is stable.

The agency said the downgrade is the result of the sharp downturn in consumer spending and the associated deterioration in the company's expected operating performance.

The company's liquidity profile provides a degree of financial flexibility and should remain adequate through the downturn in its business, Moody's said, but compliance with bank maintenance covenants could be jeopardized in the event of heightened operating pressures or further adverse foreign-exchange movements.

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