Summary: Orchard Supply Hardware LLC Dec 11
Standard & Poors, December 2011
Abstract
The rating on San Jose, Calif.-based home and garden retailer Orchard Supply Hardware LLC reflects our expectation that operating results in 2011 will remain under pressure, with negative sales trends and squeezed margins, despite tight expense management. As such, Standard & Poor's Ratings Services expects credit protection measures to weaken , with total debt to EBITDA reaching over 7.0x in fiscal 2011, compared with our previous expectations of about 6.1x. Due to weaker-than-expected cash flow generation, we expect Orchard to operate with limited covenant headroom of less than 10% of EBITDA under the term loan's adjusted leverage ratio, despite some debt repayment. We view Orchard's financial profile as "highly leveraged" (based on our criteria), given the significant amount of debt...
Companies mentioned in this report are: Orchard Supply Hardware LLC
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.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
Orchard Supply Hardware LLC
Customers who bought this item also bought
All rights reserved. © Copyright 2013 Research and Markets WWW4
Terms and Conditions Privacy Policy Publishers Employment Opportunities Site Map Link to us Webmaster Affiliate Network
