Moody’s Cuts Wabash National Rating to B2, Execs Forecast 27% Rebound
Moody’s lowered Wabash National’s corporate family rating to B2 from B1, marking the third downgrade in 12 months and assigning a negative outlook due to net leverage of 6.5x EBITDA and cash flow constraints. Wabash executives forecast a 27% EBITDA rebound in 2026 driven by efficiency gains and rising backlog.
1. Rating Cut Details
Moody’s committee lowered Wabash National’s corporate family rating to B2 from B1, marking the third downgrade within 12 months. The action moves the company deeper into speculative-grade territory and carries a negative outlook.
2. Rationale Behind Downgrade
Moody’s cited stretched liquidity at Wabash, with net debt around 6.5x trailing EBITDA and constrained free cash flow due to supply chain pressures and rising interest expenses.
3. Wabash’s Rebound Outlook
Despite successive downgrades, Wabash National’s management projects a 27% increase in EBITDA for 2026, supported by factory efficiency improvements, targeted cost reductions and a 15% year-on-year increase in backlog.
4. Implications for Moody’s Business
This latest rating action highlights Moody’s ongoing engagement in the industrial credit sector but is unlikely to significantly alter its fee revenue, which remains diversified across numerous issuers.