Edcon Holdings (Proprietary) Ltd. Jul 08
Standard & Poors, July 2008
Abstract
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 (Proprietary) Ltd.
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
Edcon Holdings (Proprietary) Ltd.
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