Bond.az - Fitch Ratings downgraded Whirlpool Corporation's Long-Term Issuer Default Rating to 'BB-' from 'BB' on Wednesday with a Negative outlook. The agency also lowered the company's unsecured debt ratings to 'BB-'/'RR4' from 'BB'/'RR4', while affirming its Short-Term IDR and commercial paper ratings at 'B'.
The downgrade reflects weaker demand, lower margins, and elevated leverage due to sluggish housing activity and the prolonged impact of the Iran conflict. Higher raw material costs and weakened consumer sentiment are key factors. Fitch expects EBITDA margins of 6%-6.5% in 2026 and 7%-8% in 2027, below previous forecasts.
Fitch estimates EBITDA leverage of 6.3x-6.8x by end-2026 and 4.5x-5.0x by end-2027. Whirlpool suspended its quarterly common stock dividend starting in Q2 2026, preserving about $225 million annually.
An extended closure of the Strait of Hormuz beyond July 2026 could raise oil prices above Fitch's assumptions. Whirlpool holds $626 million in cash and has access to a $2.25 billion revolving credit facility.
