Sunday, July 06, 2008

Briggs & Stratton Gets a Whack from Moody's


Moody's Investors Service lowered the noninvestment-grade credit ratings of engine maker Briggs & Stratton Corp. because of its "weak operating performance and negative free cash flow generation

The agency lowered to Ba2 from Ba1 the company's corporate family rating, its probability of default and its senior unsecured notes. Both Ba2 and Ba1 are noninvestment grade.

The action by Moody's, which also said the outlook is "Stable," affects about $266 million in debt of the Wauwatosa, Wis.-based company.

The agency cited "continued unfavorable weather conditions, a weak U.S. economy, unfavorable product mix, ongoing competition from Asian engines and costs associated with reconfiguring various operations" as reasons for the company's weak performance in 2007 and 2008.

Interesting stuff follows:

In the past 52 weeks, shares had ranged from $12.38 to $33.40.

I dunno. Simplicity, Snapper, Generac, plus a commercial brand..."poor product mix"?

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