Rating Upgrade Overview
Moody's on Thursday upgraded the senior secured revolving credit facility of Amer Sports Corporation (NYSE:AS) to Baa3 from Ba1, while affirming the Ba1 corporate family rating and Ba1‑PD probability‑of‑default rating for the parent. The speculative‑grade liquidity rating stays at SGL‑1 and outlooks for both entities remain stable.
Debt Reduction and Leverage
The upgrade reflects a substantial debt repayment funded by equity‑issuance proceeds, which lowered secured debt in the capital structure. Moody’s‑adjusted debt‑to‑EBITDA fell to 0.9× as of 31 March 2026 after the 2026 secured notes repayment, positioning the rating firmly within the Ba1 category. The company’s public net‑leverage target is 1.5×; Moody’s expects leverage to stay below 2× in the intermediate term.
Operating Profile
Amer Sports holds leading positions in premium outdoor apparel, trail footwear and sports equipment. Its brands Arc’teryx and Salomon each generate more than US$2 billion of revenue and contribute the bulk of operating profit, while Wilson and smaller sports‑equipment brands add diversification. Moody’s‑adjusted EBITA‑to‑interest expense is 20× on a pro‑forma basis.
Outlook and Liquidity
Moody’s projects revenue growth of high‑teen to low‑20 percent over the next 12‑18 months, with a modest improvement in EBITDA margin. Debt‑to‑EBITDA is expected to remain around 1×, assuming no new debt aside from increasing operating leases. Liquidity is judged “very good,” supported by cash balances, solid free cash flow and access to an undrawn revolving credit facility of US$710 million.
Ownership Structure
ANTA Sports Products Limited holds roughly 40 % of Amer Sports’ outstanding shares, and other pre‑IPO shareholders collectively own about 30 %. ANTA retains the right to nominate five directors on the board as long as its ownership stays above the 30 % threshold.