Bulletin: Ratings And Outlook On Li & Fung Ltd. Unaffected By Arcandor's Bankruptcy
- ID: 1771370
- Standard & Poors
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Research type: News
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HONG KONG (Standard & Poor's) June 11, 2009--Standard & Poor's Ratings Services said today that its ratings and outlook on Li & Fung Ltd. (A-/Stable/--) are not affected by the bankruptcy of a major customer, Germany-based Arcandor AG (not rated). In our view, the impact on Li & Fung's profitability should be limited and the potential sales gap could be filled by contributions from recent acquisitions and better-than-expected sales orders from existing customers due to restocking. We believe Li & Fung continues to have reasonably good credit controls and prudent credit management, which helps to contain the impact of a significant number of customer defaults in 2008. We had expected a further increase in bad debt expenses for Li &...
Companies mentioned in this report are: Li & Fung Ltd.