PPR S.A. May 09
Standard & Poors, May 2009
Abstract
Broad business diversification Strong recognition of Gucci and Puma brands Robust free cash flow generation Sound liquidity Aggressive financial policy Retail activities significantly hit by the downturn Negative repercussions from parent company Artemis The ratings on French diversified and luxury-goods retailer PPR S.A. reflect the group's leveraged business score offset by leading and wide-ranging positions in luxury goods, nonfood retail, and, through 69%-owned Puma, mass-market goods. The group's ability to generate substantial free cash flow (FCF) also underpins the ratings. That said, the relatively high leverage of controlling holding Artemis is a constraint, negatively weighing on financial flexibility. We view PPR's diversification in nonfood retail, luxury goods, and sportswear as above average, but set to weaken in the future given...
Companies mentioned in this report are: PPR S.A.,PPR Finance
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
PPR S.A.,PPR Finance
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