SGS International Inc. Apr 11
Standard & Poors, April 2011
Abstract
Good market position as one of the largest providers of graphic services; Long-term relationships with major consumer goods companies; and Moderate capital spending requirements. Lack of clear articulation of financial policy; Small cash flow base; and Customers' pressure on pricing given overcapacity in the industry. The 'B+' corporate credit rating reflects SGS International Inc.'s aggressive financial profile, given its ownership by an equity sponsor, and ongoing uncertainty regarding longer-term financial policy. Although the company has shown a commitment to debt repayment, the lack of a clear articulation of financial policy constrains the rating. SGS has a weak business risk profile, in our view, occupying a niche market position in a highly fragmented industry and is subject to pricing pressure. We...
Companies mentioned in this report are:
- SGS International Inc.
Action: Review
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
- SGS International Inc.
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