S&P Global Ratings Upgrades Doosan Bobcat’s Credit Rating to BB+ Stable

Doosan Bobcat announced on April 30 that its credit rating from the global rating agency S&P has been upgraded from BB Stable to BB+ Stable. Rating agencies typically adjust the credit rating outlook first and then observe the company before changing the rating. Therefore, it is unusual for the rating to be upgraded directly without altering the outlook from ‘Stable’ to ‘Positive.’

S&P noted Doosan Bobcat’s robust performance and analyzed, “Despite operational slowdown and investment increase, Doosan Bobcat will maintain solid financial metrics for the next two years.” Doosan Bobcat marked its record-high performance last year with sales revenue of USD 7.5 billion, operating profit of USD 1.1 billion, and an operating profit margin of 14.2%.

Due to its strong operating performance, Doosan Bobcat has steadily reduced its net debt. The net debt, which was close to USD 870 million at the end of 2017, has gradually decreased, and it successfully transitioned to a net cash position, surpassing borrowings for the first time at the end of the third quarter of 2023. As of the end of the first quarter of this year, net debt stands at minus USD 357 million, continuing the net cast trend.

The company official stated, “Another global credit rating agency, Moody’s, also upgraded Doosan Bobcat’s credit rating from Ba3 Positive to Ba2 Stable earlier this year,” and added, “With consecutive credit rating upgrades, Doosan Bobcat expects to save interest cost of approximately USD 9.2 million over the next five years.”