S&P shifts AM General view to positive

S&P said it changed its outlook for PM General Purchaser LLC (AM General) to positive from stable and affirmed the B- ratings on the company and its senior secured notes. The 4 recovery rating on the notes is unchanged.

“Revenues are increasing substantially as order delays have subsided. Delays in new vehicle sales stemming from the Covid-19 pandemic extended well beyond our initial expectations. However, we expect new vehicle sales to be up more than 30% in 2023 as AM General captures pent-up demand. In addition to a natural sales increase from previous delays, the geopolitical environment is resulting in significant Humvee demand in both Ukraine and Israel,” S&P said in a statement.

The agency said it forecasts organic revenue growth of 40%-45% in 2023 and 15%-20% in 2024.

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