Last month, Fitch, the ratings agency, cut Whirlpool’s rating to effectively junk due to high debts and a slow recovery in demand for appliances and further said that the outlook for the company was negative, as well as further downgrades may come if performance doesn’t improve.
Whirlpool, once the largest appliance producer in the world, lost its crown some time ago to Chinese giant Haier, and a few years ago, more or less abandoned its European operations, largely now operated by Beko (Arcelik).
The full statement from Fitch can be found here
But now Whirlpool has said that it will sell bonds worth $1.2 Billion in order to refinance its debt that will mature in 2030 and 2033. Little more is known about this time on the sizes etc of this move.
This seems to suggest that Whirlpool’s troubles might run deeper than anyone had previously thought, and we don’t think that the domestic political situation will be helping matters right now. Although Whirlpool has publicly stated that it believes that the tariffs will be a net benefit to it, as they restrict imports from competitors.
Stating so did cause a bounce in their share price, however, it would appear that wasn’t enough to reassure the likes of Fitch that the company was on the right track.
But stock prices have recovered lately and appear to be fairly stable, with markets seeming to think that the tariffs may indeed aid Whirlpool.
Just how much trouble are they in, and can they escape these woes? Only time will tell.
