Moody's Investors Service lowered the rating on Whirlpool Corporation's senior unsecured notes and its guaranteed subsidiary borrowers from B1 to B2 on 3 June 2026.
The downgrade follows Whirlpool's decision to upsize its senior secured second‑lien notes offering to $2.0 billion (two $1.0 billion tranches due 2031 and 2034), up from $1.5 billion, which increases the effective subordination of the unsecured notes.
Proceeds from the second‑lien issuance will be used to refinance existing Euro‑denominated unsecured notes due 2026 and 2027, repay borrowings on the existing revolver, and the company is also establishing a new $2.0 billion asset‑based lending revolving facility due 2031.
Moody's retained Whirlpool's Ba3 Corporate Family Rating, Ba3‑PD Probability of Default rating, and Ba1 rating on senior secured second‑lien notes, citing the company's scale in North America and Latin America but noting high leverage with debt‑to‑EBITDA around 7.1× for the 12‑month period ending Q1 2026.
The agency maintains a negative outlook, warning that further downgrades could occur if operating earnings do not improve or if free cash flow does not reach at least 3 % of debt over the next 12 months.
Whirlpool’s February 2026 equity issuance and suspension of its common dividend in May 2026 are expected to aid deleveraging if earnings rebound.
