Moody’s Rating Upgrades Manitowoc to B1 from B2

Rhea-AI Summary

Moody's Ratings has upgraded Manitowoc's credit rating to B1 from B2, reflecting the company's solid operating performance. This upgrade is attributed to Manitowoc's strategic efforts to reduce cyclicality exposure through its CRANES+50 strategy, which focuses on growing higher margin and more stable aftermarket parts and services, as well as other non-new machine businesses. The improved rating demonstrates Manitowoc's successful implementation of its business strategy and financial stability.

Positive

• Credit rating upgraded from B2 to B1 by Moody's
• Solid operating performance acknowledged
• Successful implementation of CRANES+50 strategy
• Reduced exposure to cyclicality
• Growth in higher margin aftermarket parts and services

Negative

• None.

Insights

Financial Analyst

Moody's upgrade of Manitowoc’s credit rating from B2 to B1 is a significant development that underscores the company's improved financial health. A credit rating upgrade generally implies a lower risk of default, which can potentially reduce borrowing costs for the company. Lower borrowing costs can lead to better profit margins as the company can spend less on interest payments.

Manitowoc’s CRANES+50 strategy is particularly important here. By focusing on growth in higher-margin, stable aftermarket parts and services instead of new machine sales, the company is mitigating the risks associated with market cycles. This can result in more predictable revenue streams and improved financial stability.

Nonetheless, investors should keep in mind that a B1 rating still falls within the non-investment grade category. While improved, it indicates that the company is still perceived as having higher credit risk compared to investment-grade counterparts.

In the short-term, this upgrade can positively affect the stock price due to increased investor confidence. In the long-term, if Manitowoc continues to execute its strategy effectively, further upgrades and improved financial metrics can be expected.

Investors should also consider the broader economic context, such as interest rate trends and sector-specific variables, which may impact the company's financials.

MILWAUKEE--(BUSINESS WIRE)-- The Manitowoc Company, Inc. (NYSE: MTW) (the “Company” or “Manitowoc”) is pleased to share that Moody's Ratings (Moody's) has upgraded the Company’s credit rating to B1 from B2, reflecting the Company’s solid operating performance.

“This upgrade is a testament of Manitowoc’s efforts to structurally reduce our exposure to cyclicality by deliberately targeting growth in the higher margin and more stable aftermarket parts and services and other non-new machine businesses via our CRANES+50 strategy,” said Aaron H. Ravenscroft, President and Chief Executive Officer.

About The Manitowoc Company, Inc.

The Manitowoc Company was founded in 1902 and has over a 120-year tradition of providing high-quality, customer-focused products and support services to its markets. Headquartered in Milwaukee, Wisconsin, United States, Manitowoc is one of the world's leading providers of engineered lifting solutions. Manitowoc, through its wholly-owned subsidiaries, designs, manufactures, markets, distributes, and supports comprehensive product lines of mobile hydraulic cranes, lattice-boom crawler cranes, boom trucks, and tower cranes under the Aspen Equipment, Grove, Manitowoc, MGX Equipment Services, National Crane, Potain, and Shuttlelift brand names.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240716405328/en/

Ion Warner

SVP, Marketing and Investor Relations

+1 414-760-4805

Source: The Manitowoc Company, Inc.

FAQ

What is Manitowoc's new credit rating from Moody's?

Moody's Ratings has upgraded Manitowoc's (MTW) credit rating to B1 from B2.

What strategy is Manitowoc implementing to reduce cyclicality?

Manitowoc (MTW) is implementing the CRANES+50 strategy, focusing on growth in higher margin aftermarket parts and services and other non-new machine businesses to reduce cyclicality exposure.

How has Manitowoc's operating performance been described in the recent credit rating upgrade?

Manitowoc's (MTW) operating performance has been described as solid in the recent credit rating upgrade by Moody's.

What areas is Manitowoc targeting for growth according to the press release?

Manitowoc (MTW) is targeting growth in higher margin and more stable aftermarket parts and services, as well as other non-new machine businesses.