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Australasian Food & Consumer Products Industry Maintains Stable Credit Quality Jun 00
Standard & Poors, June 2000
Abstract
Credit quality is generally stable in the Australasian food and consumer products industry, reflecting strong and stable cash flows from largely recession-resistant products, and mature domestic markets in which a few key players have strong positions. Consolidation, competition, and raw material price sensitivity, nonetheless, remain key credit risks, with acquisitions and mergers the primary means of business expansion. New products and brand extensions, as well as a focus on cost reductions, are the principal means of sustaining margins. Export trade and investment in offshore markets is significant for some companies given the relatively small domestic markets in Australia and New Zealand. While exports provide a key opportunity to expand sales and diversify revenue streams, exposure to demand, price, and currency...
Companies mentioned in this report are: Burns, Philp & Co. Ltd.,New Zealand Dairy Board,Coca-Cola Amatil Ltd.,New Zealand Co-operative Dairy Co. Ltd. (The),Bonlac Foods Ltd.,Kiwi Co-operative Dairies Ltd.
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.
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