S&P raises Great Outdoors

S&P said it raised its ratings for Great Outdoors Group LLC and its term loan to BB from BB-.

“We expect the company's recently elevated leverage will likely improve to the mid-3x area in 2024. Great Outdoors has demonstrated the ability and willingness to operate with lower leverage, which is a trend we expect will continue over the long term. As of the end of the last two fiscal years, the company's S&P Global Ratings-adjusted leverage has remained below 4x.

“Great Outdoors' leverage was in the mid-3x area before it redeemed $1 billion of minority equity in early 2022, though we expect it will return its leverage to this level in 2024 from an estimated level of approximately 4x as of the end of 2023 due to elevated incentive compensation payments and other expenses,” S&P said in a press release.

The outlook is stable.

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