Fender Musical Instruments Corporation - Moody's announces the completion of a regular review of Fender Musical Instruments Corporation's ratings

2021-12-14 10:58:57 By : Ms. Jane He

As the pandemic continues to challenge the market, Argus will discuss their forecast for 2022 on Tuesday, December 14th at 2 pm Eastern Time.

Periodic Review Announcement: Moody's announced the completion of the periodic review of Fender Musical Instruments Corporation's ratings. Global Credit Research-December 13, 2021, New York, December 13, 2021-Moody's Investor Services ("Moody's") has Complete a regular review of Fender Musical Instruments Corporation's ratings. Fender Musical Instruments Corporation and other ratings associated with the same analysis unit. The review was conducted through a portfolio review discussion held on December 6, 2021, in which Moody's re-evaluated the appropriateness of the rating based on relevant main methods, recent developments, and comparison of financial and operating conditions with similar ratings. The review does not involve the rating committee. Starting from January 1, 2019, Moody's practice has been to issue a press release to announce its completion after each periodic review. The publication does not announce credit rating actions, nor does it indicate whether credit rating actions may be taken in the near future. The credit rating and outlook/review status cannot be changed during the portfolio review and are therefore not affected by this announcement. For any credit rating cited in this publication, please refer to the rating label on the issuer/entity page of www.moodys.com for the latest credit rating action information and rating history. The main rating considerations are summarized below. Fender's credit profile (B1 CFR) reflects the company's strong brand awareness. Fender's name benefits from the long-term reputation and quality of its guitars and product innovation. This provides strong brand awareness and huge barriers to entry for its flagship guitar product. Fender is also one of the largest musical instrument companies in the world. About half of the company's sales come from outside North America, about a third from Europe, and about 15% from Asia. Fender's financial policies reflect the use of appropriate financial leverage. In addition to the uncertainty caused by the coronavirus pandemic, the main credit risks also include non-essential consumer spending on musical instruments, a high degree of discretion, Fender's relatively narrow product focus, and high customer concentration. This document summarizes Moody's as of the release date and will not be updated until the next periodic review announcement, which will include major changes in credit conditions (if any) during this period. The main method used in this review is consumer durables released in September 2021. Please refer to the rating method page www.moodys.com for a copy of this method. This announcement only applies to EU ratings, UK ratings, EU accredited ratings, and UK accredited ratings. 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