ac investment research
AC Investment Research

Reach out to real time stock forecast, stock rating, price target, dividend info, news and buy-sell analysis derived objectively by machine learning.



We believe demand for Whirlpool's products is likely to decline materially--at least over the near term--because of the economic fallout of the spread of COVID-19. In addition, global financial conditions have deteriorated substantially. We are revising our outlook to negative from stable and affirming our 'BBB' long-term issuer credit rating on the U.S.-based major home appliance company. The negative outlook reflects the potential for a lower rating over the next few quarters if sales and EBITDA decline significantly, most likely due to an adverse economic impact from COVID-19, resulting in adjusted leverage sustained above 3.0x. CHICAGO (S&P Global Ratings) March 18, 2020—S&P Global Ratings today took the rating actions listed above. The rating action reflects the probability that weak global macroeconomic conditions sparked by the COVID-19 pandemic will make demand for Whirlpool's products decline materially over the near term and cause credit ratios to deteriorate, including adjusted leverage sustained over 3.0x. We estimate adjusted leverage as of Dec. 31, 2019, was about 2.9x. The negative outlook reflects the potential for a lower rating over the next few quarters if sales and EBITDA decline materially, most likely due to an adverse economic impact of COVID-19. We could lower the rating if we forecast that Whirlpool will sustain adjusted leverage over 3.0x due to the global macroeconomic environment worsening significantly, including meaningfully weaker demand or significant supply chain disruptions. Rating pressure could also result if Whirlpool makes large, debt-financed acquisitions or share repurchases, though we believe this is unlikely over the near term. We could revise our outlook to stable if the risk of a sustained economic downturn recedes and demand for Whirlpool's products begins to improve such that we project adjusted leverage will be sustained below 3.0x. We could see this occurring if COVID-19 risks dissipate and consumers release pent up demand for appliances.

AC Investment Research

In our experiment, we focus on an approach known as Decision making using game theory. We apply principles from game theory to model the relationships between rating actions, news, market signals and decision making.

301 Massachusetts Avenue Cambridge, MA 02139 667-253-1000 pr@ademcetinkaya.com