Summary: Douglas Dynamics Inc. May 11
- ID: 1793493
- May 2011
- Standard & Poors
The ratings on Milwaukee-based snow- and ice-control products maker Douglas Dynamics Inc. reflect our expectation that the company's track record of good profitability and consistent free cash flow generation should enable it to maintain a financial leverage of less than 4x adjusted debt to EBITDA, and to support its significant dividend payout, despite its high exposure to unpredictable weather patterns. Standard & Poor's Ratings Services views Douglas' business risk profile as weak and its financial profile as aggressive. The company sells its snow and ice control products mainly in the U.S., but also, to a modest extent, in Canada and through export sales resulting in limited geographic diversity. Demand for its products depends significantly on snowfall, which creates a significant...
Companies mentioned in this report are: Douglas Dynamics Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
SHOW LESS READ MORE >