Catalina assigned 'B+' corporate credit rating
Thursday, 11 October 2007
MUMBAI, Oct 10 (Newstex): Standard & Poor's (NYSE:MHP) Ratings Services said it assigned 'B+' corporate credit rating to Florida-based Catalina Marketing Corp with a negative outlook.
S&P said the rating reflects high leverage, limited levels of expected debt repayment over the intermediate term due to a growth strategy that hinges on high capital investment, a competitive consumer promotion marketplace and the company's customer base of powerful consumer products companies.
These factors are only partly offset by Catalina's high margins and strong operating cash flow generation, relatively high barriers in its markets due to the company's installed base of customers and retailers.
S&P said the rating reflects high leverage, limited levels of expected debt repayment over the intermediate term due to a growth strategy that hinges on high capital investment, a competitive consumer promotion marketplace and the company's customer base of powerful consumer products companies.
These factors are only partly offset by Catalina's high margins and strong operating cash flow generation, relatively high barriers in its markets due to the company's installed base of customers and retailers.