- ID: 1711911
- February 2011
- Standard & Poors
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
The ratings on Germany-based home-improvement retailer Hornbach-Baumarkt-AG (Baumarkt) reflect Standard & Poor's Ratings Services' view of the group's significant financial risk profile due to leverage incurred from previous debt-financed capital investments. This is mitigated by the group's financial policy of carefully managed capital investments, which translates into an ability to generate free operating cash flow and reduce leverage. The ratings also reflect our view of Baumarkt's satisfactory business risk profile, supported by its well-entrenched position in its domestic market and by its proven business model, which is well-suited to the competitive German do-it-yourself (DIY) market. Baumarkt's reported financial debt was -446 million as of Nov. 30, 2010, against reported cash of -497 million. In the nine months, and especially in...
Companies mentioned in this report are: Hornbach-Baumarkt-AG
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