Bangkok--6 Jun--TRIS Rating
TRIS Rating Co., Ltd. has affirmed the company rating of I.C.C. International PLC (ICC) at “AA” with “stable” outlook. The rating reflects the company’s debt-free status, the proven capability and experience of ICC’s management team, the diversity of its product range and brands, and its position as Thailand’s leading distributor of lingerie, men’s apparel and cosmetics. Although the highly-competitive environment and the increasing influence of modern retail outlets, such as discount and specialty stores, together with increasing competition from directly imported products, especially in the cosmetics business, may pressure ICC’s profitability, TRIS Rating expects that the company will be able to sustain its strong position in the future. The rating also takes into consideration the low profitability associated with all trading companies, exposure in the form
of guarantees to related companies, and the complex shareholding structure of the Saha Group.
The “stable” outlook reflects TRIS Rating’s expectation that ICC will continue to maintain solid market share across its product lines, despite intense competition. Its conservative financial policy also supports the company’s rating.
TRIS Rating reported that ICC is one of Thailand’s largest wholesalers and distributors.
Its activities are the distribution and marketing of consumer products, particularly lingerie, apparel and cosmetics. The company offers more than 100 brands, such as Wacoal, Arrow, Lacoste, Guy Laroche, ELLE, and Itokin, most of which are well-accepted by Thai consumers. ICC also markets its own brands, such as Kullastri, Enfant, Essence, St. Andrews, POP Line and its latest brand, BSC.
TRIS Rating said that 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 allow it to successfully maintain leading positions in its target markets. ICC is the clear leader in the middle- to high-end lingerie market, with a 70%
market share, due largely to the success of Wacoal products, which have a market share of more than 60%. The success of Lacoste and Arrow products has generated sustained growth in men’s apparel sales since 1998. The contribution of men’s apparel to total sales increased sharply, from 17% in 2000 to 25% in 2005.
TRIS Rating also said that, in addition to having been debt-free since 2002, ICC has gradually reduced guarantees to related companies from Bt1,023 million in 1999 to Bt392 million at the end of 2005.