Brunswick Corp stock falls to 17-year low
By IBI Magazine
Brunswick's stock yesterday fell to a 17-year low, with shares dropping 65 cents, or 5.8 per cent, to US$10.60, after reaching a low of US$10.55 earlier in the day. The last time the stock traded that low was 1991. It had been trading between US$11.01 and US$33.62 during the past 52 weeks. According to a story in the Associated Press, Standard and Poor's lowered its long-term rating on the company from "BBB" to "BBB-". The "BBB-" rating is the lowest investment grade rating. S&P also put Brunswick on its "CreditWatch negative" list. "The rating downgrade and CreditWatch placement reflect our concerns about the effects of Brunswick's operating outlook revision on credit quality and, more broadly, conditions in the recreational marine industry," said Andy Liu, Standard & Poor's credit analyst, in a statement. A research note issued by S&P said that Brunswick will continue to have sufficient liquidity, with US$267 million of cash and cash equivalents as of March 29, 2008 and US$650 million in undrawn credit, and an expected US$400 million in cash by the end of 2009. "However, Brunswick could face some bank covenant pressure toward the end of 2008 due to a high level of restructuring charges," according to the report.
(1 July 2008)
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