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BULLETIN: Rating On Hong Kong's Li & Fung Ltd. Not Affected By Acquisition
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.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
Abstract
HONG KONG (Standard & Poor's) May 2, 2006--Standard & Poor's Ratings Services said today that the corporate credit rating on Li & Fung Ltd. (A-/Stable/--) was not affected by the acquisition of U.S.-based Oxford Womenswear Group from Oxford Industries, Inc. (BB-/Stable/--). The US$37 million acquisition will be financed with a combination of cash and bank debt. Li & Fung's financial profile is expected to remain commensurate with the 'A-' rating. Post the acquisition, Li & Fung's ratio of debt to EBITDA is expected to remain below 2x. The company's business risk profile is also expected to remain strong, as the acquisition complements its existing sourcing business model, which is characterized by low margins and no inventory risk. The Oxford acquisition...
Companies mentioned in this report are: Li & Fung Ltd.
Action: Bulletin
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