Strong market position Adequate liquidity position Complementary range of retail chains and good diversity of brands Favorable socioeconomic trends Highly leveraged financial profile Geographic concentration Reliance on consumer credit Cyclicality, seasonality, and discretional nature of purchases risks inherent in the clothing and footwear retail industry Mismatch in currency between cash flows and notes The ratings on South Africa-based clothing and footwear retailing group, Edcon Holdings (Proprietary) Ltd. (Edcon), reflect its highly leveraged financial profile, the lack of geographic diversity in its operations, and a reliance on consumer credit to sustain retail sales. The ratings are further constrained by the cyclicality and seasonality of the apparel retail industry and the discretionary nature of clothing and footwear purchases, all of which combine...
Companies mentioned in this report are:
- Edcon Holdings Ltd.
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