The rating is supported by the company's status as one of the largest toy makers in the world, a strong brand portfolio, and good geographic diversification. Mattel's turnaround has exceeded Moody's expectations on virtually every front, including financial strategy, with the dividend suspension initiated in 2017 remaining intact, resulting in significant free cash flow that has fueled meaningful debt reduction. This performance is especially impressive given the myriad coronavirus, raw material, and supply chain driven challenges that have pervaded. Mattel's credit profile also reflects its limited segment diversification (toys and games), concentrated customer base, and exposure to cost increases and product recalls. Revenue and operating cash flow are highly seasonal and dependent on continual reinvestment in product development and marketing to sustain market position.