|
|
 |
|
Viewing report
|
|
|
|
ARCHIVE | Criteria | Corporates | Industrials: Releasing the Credit Impact of Captive Finance Operations From U.K. Retailers Jul 02
Standard & Poors, July 2002
Abstract
(Editor's note: In line with other analytical practices of Standard & Poor's, this article has been republished to take a relatively less conservative view of captive finance operations. Specifically, customer receivables, which were previously assumed to be funded entirely through debt, are now considered to be funded with a mix of debt and equity. The overall effect of this adjustment on corporate debt protection measures is modest.) A small number of retailers in the U.K. operate captive finance business units as a means of growth and diversification. These activities can have a significant effect on an issuer's financial profile, although this is not always easy to establish because captive finance operations are usually consolidated in the credit's overall performance figures....
Companies mentioned in this report are: Marks & Spencer PLC,Signet Jewelers Ltd.,Experian Finance PLC
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: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
|
|
|
|
