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C&S Wholesale Grocers
Standard & Poors, April 2011
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.
Research Type: Full Analysis
Abstract
The largest wholesale grocery distributor in the U.S. based on revenues in a fragmented industry; and A fairly low-cost operator. As a wholesale distributor, razor-thin margins; and Significant customer concentration. The speculative-grade rating on privately owned C&S Wholesale Grocers Inc. and 75% owned subsidiary C&S Group Enterprises LLC reflect its high debt leverage and Standard & Poor's Ratings Services' expectation that revenues should remain positive in fiscal 2011 because of higher unit volume and commodity prices. However, we estimate that margins will likely be relatively flat. We view C&S Wholesale Grocers' business risk profile as weak even though the company is one of the leading wholesale grocery distributors. This is based on its significant customer concentration. In addition, we characterize...
Companies mentioned in this report are: C&S Wholesale Grocers,C&S Group Enterprises LLC
Action: Review
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