TRIS Rating Co., Ltd. has affirmed the company rating of I.C.C. International PLC (ICC) at “AA” with “stable” outlook. The rating continues to reflect ICC’s debt-free status, the proven capability and experience
of the management team, a diverse range of products and brands, and its position as Thailand’s
leading distributor of lingerie, men’s apparel, and cosmetics. ICC has a current strategy to gradually develop its own specialty stores while keeping good relationship with both traditional and modern
trade distribution channels. TRIS Rating expects this strategy will help the company sustain its
strong market position. The rating also takes into consideration the low profitability typically
associated with trading companies, the slowdown in private consumption, and the complex
shareholding structure of the Saha Group.
The “stable” outlook reflects TRIS Rating’s expectation that ICC will maintain
solid market shares across its product lines, despite intense competition. A conservative financial
policy will strongly support the company’s rating.
TRIS Rating reported that ICC is one of Thailand’s largest wholesalers and distributors, distributing and marketing consumer products, particularly lingerie, apparel, and cosmetics. The company offers more than 100 brands, both foreign and own-brands, such as Wacoal, Arrow, Lacoste, Guy Laroche, ELLE, and
Itokin, most of which are well-accepted by Thai consumers. The competence and experience of ICC’s management team, together with support from suppliers within the Saha Group, have made the company a leading distributor in Thailand and allowed it to maintain its market-leading positions.
TRIS Rating said, ICC is the clear leader in the middle- to high-end lingerie market, with a combined market share of over 67%. Wacoal products are a major contributor, with a market share of more than 58%.
The success of Lacoste and Arrow products has sustained growth in men’s apparel sales since 1998.
Men’s apparel now makes up a large portion of total sales, rising from 20% in 2002 to 25%
in 2006. Financial policies remain very conservative, as ICC has been debt-free since 2002.
ICC has gradually reduced guarantees to related companies from Bt1,023 million in 1999 to Bt333 million at the end of March 2007.
An uncertain economic environment has slowed private consumption, which negatively
impacted ICC’s financial performance. Sales during the first quarter of 2007 declined by 9.9% to
Bt2,899 million in 2007, from Bt3,219 million in the first quarter of 2006. However, the financial
profile remains very strong. Net cash flows from operations totaled around Bt82 million in the first
quarter of 2007, said TRIS Rating. -- End
I.C.C. International PLC (ICC)
Company Rating: Affirmed at AA
Rating Outlook: Stable ----------------------------------------------------------
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Copyright 2007, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.
of the management team, a diverse range of products and brands, and its position as Thailand’s
leading distributor of lingerie, men’s apparel, and cosmetics. ICC has a current strategy to gradually develop its own specialty stores while keeping good relationship with both traditional and modern
trade distribution channels. TRIS Rating expects this strategy will help the company sustain its
strong market position. The rating also takes into consideration the low profitability typically
associated with trading companies, the slowdown in private consumption, and the complex
shareholding structure of the Saha Group.
The “stable” outlook reflects TRIS Rating’s expectation that ICC will maintain
solid market shares across its product lines, despite intense competition. A conservative financial
policy will strongly support the company’s rating.
TRIS Rating reported that ICC is one of Thailand’s largest wholesalers and distributors, distributing and marketing consumer products, particularly lingerie, apparel, and cosmetics. The company offers more than 100 brands, both foreign and own-brands, such as Wacoal, Arrow, Lacoste, Guy Laroche, ELLE, and
Itokin, most of which are well-accepted by Thai consumers. The competence and experience of ICC’s management team, together with support from suppliers within the Saha Group, have made the company a leading distributor in Thailand and allowed it to maintain its market-leading positions.
TRIS Rating said, ICC is the clear leader in the middle- to high-end lingerie market, with a combined market share of over 67%. Wacoal products are a major contributor, with a market share of more than 58%.
The success of Lacoste and Arrow products has sustained growth in men’s apparel sales since 1998.
Men’s apparel now makes up a large portion of total sales, rising from 20% in 2002 to 25%
in 2006. Financial policies remain very conservative, as ICC has been debt-free since 2002.
ICC has gradually reduced guarantees to related companies from Bt1,023 million in 1999 to Bt333 million at the end of March 2007.
An uncertain economic environment has slowed private consumption, which negatively
impacted ICC’s financial performance. Sales during the first quarter of 2007 declined by 9.9% to
Bt2,899 million in 2007, from Bt3,219 million in the first quarter of 2006. However, the financial
profile remains very strong. Net cash flows from operations totaled around Bt82 million in the first
quarter of 2007, said TRIS Rating. -- End
I.C.C. International PLC (ICC)
Company Rating: Affirmed at AA
Rating Outlook: Stable ----------------------------------------------------------
-------------------
Copyright 2007, TRIS Rating Co., Ltd. All rights reserved. Any unauthorized use, disclosure, copying, republication, further transmission, dissemination, redistribution or storing for subsequent use for any purpose, in whole or in part, in any form or manner or by any means whatsoever, by any person, of the credit rating reports or information is prohibited. The credit rating is not a statement of fact or a recommendation to buy, sell or hold any debt instruments. It is an expression of opinion regarding credit risks for that instrument or particular company. The opinion expressed in the credit rating does not represent investment or other advice and should therefore not be construed as such. Any rating and information contained in any report written or published by TRIS Rating has been prepared without taking into account any recipient’s particular financial needs, circumstances, knowledge and objectives. Therefore, a recipient should assess the appropriateness of such information before making an investment decision based on this information. Information used for the rating has been obtained by TRIS Rating from the company and other sources believed to be reliable. Therefore, TRIS Rating does not guarantee the accuracy, adequacy, or completeness of any such information and will accept no liability for any loss or damage arising from any inaccuracy, inadequacy or incompleteness. Also, TRIS Rating is not responsible for any errors or omissions, the result obtained from, or any actions taken in reliance upon such information.