Moody's raises Whirlpool's rating outlook to 'positive'

NEW YORK (AP) -- Moody's Investors Service upgraded Whirlpool Corp.'s rating outlook to "positive' from "stable' last Thursday, citing the expectation that the appliance maker's credit profile and earnings will continue to improve. Moody's said it raised its outlook despite concerns over high raw material prices and the impact of rising gas prices may have on consumer demand. "We believe Whirlpool's enhanced cost structure and improving demand trends in all of its regions should enable it to continue improving its profitability despite higher raw material costs," said Kevin Cassidy, senior credit officer at Moody's, in a statement. The company recently announced a price increase in the U.S. of 8 percent to 10 percent, to offset higher costs, he added. "We remain cautious about the consumer's willingness to pay higher prices, especially when gas prices are rising almost every day and oil is over $100 a barrel," he said. "However, even if Whirlpool is unable to garner all of its proposed price increases, Moody's believes that higher prices for the more expensive products will hold." Moody's reaffirmed its Baa3, or lower medium grade, ratings for Whirlpool's senior unsecured ratings. Shares of Whirlpool rose $1.99, or 2.5 percent, to $82.30 in afternoon trading. The stock has traded between $71 and $118.44 over the last 52 weeks. Published: Mon, Mar 7, 2011