TRIS Rating has upgraded the company rating of I.C.C. International PLC (ICC) to "AA" from "AA-" with "stable" outlook. The rating reflects the company's continuously improving financial profile, its debt-free status since 2002, the proven capability and long experience of ICC's management team, the diversity of its product range and brands, and its position as Thailand's leading distributor of its core products: 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 position in the future. The rating also takes into consideration the low profitability associated with all trading companies, exposure in form of guarantees to related companies, and the complex shareholding structure of Saha Group.
While the "stable" outlook reflects TRIS Rating's expectation that ICC will continue to maintain its solid market share across the product line, despite intense competition. Its conservative financial policy also supports the company's rating.
TRIS Rating said that ICC is the clear leader in the middle- to high-end of lingerie market with 70% market share, including Wacoal products, which has held a market share of greater than 60%. The success of Lacoste and Arrow products has generated sustained growth in men's apparel sales since 1998. The contribution to total sales from men's apparel increased sharply, from 17% in 2000 to 22% in 2003 and 23% during the first nine months of 2004. In addition to being debt-free since 2002, ICC has gradually reduced guarantees to related companies from Bt1,023 million in 1999 to Bt417 million at the end of September 2004. -- End
I.C.C. International PLC (ICC) Company Rating: Upgraded to AA from AA- Rating Outlook: Stable
While the "stable" outlook reflects TRIS Rating's expectation that ICC will continue to maintain its solid market share across the product line, despite intense competition. Its conservative financial policy also supports the company's rating.
TRIS Rating said that ICC is the clear leader in the middle- to high-end of lingerie market with 70% market share, including Wacoal products, which has held a market share of greater than 60%. The success of Lacoste and Arrow products has generated sustained growth in men's apparel sales since 1998. The contribution to total sales from men's apparel increased sharply, from 17% in 2000 to 22% in 2003 and 23% during the first nine months of 2004. In addition to being debt-free since 2002, ICC has gradually reduced guarantees to related companies from Bt1,023 million in 1999 to Bt417 million at the end of September 2004. -- End
I.C.C. International PLC (ICC) Company Rating: Upgraded to AA from AA- Rating Outlook: Stable