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Brown Shoe Co. Inc.
Standard & Poors, March 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
Largest specialty family footwear retailer in the U.S.; and Diversified sourcing and wholesale customer base. Participation in the intensely competitive, mature and fragmented wholesale and retail footwear industry; Inconsistent operating performance; Low profitability relative to peers; and Substantial leverage and thin cash flow protection metrics. The speculative-grade ratings on Brown Shoe Co. Inc. reflect Standard & Poor's Ratings Services' expectation that leverage is likely to decline to the mid-4x over the near term because of strong top-line growth from the ASG acquisition, coupled with relatively stable margins. However, an increase in debt to fund the ASG transaction is likely to partially offset performance gains. It also reflects our analysis of the company's participation in the mature, competitive, and fragmented wholesale...
Companies mentioned in this report are: Brown Shoe Co. Inc.
Action: Review
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