MIRA
INFORM REPORT
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Report Date : |
17.12.2011 |
IDENTIFICATION DETAILS
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Name : |
CHARLOTTE RUSSE |
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Registered Office : |
7007 Friars Rd Ste 304 San Diego, CA 92108-1141 |
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Country : |
United States |
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Date of Incorporation : |
Not Available |
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Legal Form : |
Private Branch |
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Line of Business : |
Retail sale of clothing |
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No. of Employees : |
70 |
RATING & COMMENTS
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MIRAs Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
$5,000 (USD) |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
United States |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name and address
Charlotte Russe
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Business
Description
|
Located in San Diego, Calif., Charlotte Russe is a mall-based
specialty retailer of value-priced apparel as well as accessories. The company
has been operational since 1975 providing a variety of fashion-forward
merchandise with an emphasis on the lifestyle trends of young women. In
addition, Charlotte Russe offers its own line of labels, such as Charlotte
Russe, Refuge and blu Chic. The company operates more than 500 stores
throughout 45 states of the country and Puerto Rico. |
Industry
|
Industry |
Retail (Apparel) |
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ANZSIC 2006: |
4251 - Clothing Retailing |
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NACE 2002: |
5242 - Retail sale of clothing |
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NAICS 2002: |
448140 - Family Clothing Stores |
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UK SIC 2003: |
5242 - Retail sale of clothing |
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US SIC 1987: |
5651 - Family Clothing Stores |
Key Executives
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News
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1 - Profit &
Loss Item Exchange Rate: USD 1 = USD 1
2 - Balance Sheet Item Exchange Rate: USD 1 = USD 1
Corporate Overview
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Corporate Structure News
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Charlotte Russe |
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Company Name |
Company Type |
Location |
Country |
Industry |
Sales |
Employees |
|
Parent |
Boston, MA |
United States |
Miscellaneous Financial Services |
21.9 |
300 |
|
|
Subsidiary |
Charlotte, NC |
United States |
Restaurants |
104.0 |
4,300 |
|
|
Subsidiary |
Cachoeirinha, RS |
Brazil |
Retail (Home Improvement) |
270.5 |
2,780 |
|
|
Subsidiary |
Atlanta, GA |
United States |
Consumer Financial Services |
|
750 |
|
|
Subsidiary |
Grimsby |
United Kingdom |
Personal Services |
27.6 |
198 |
|
|
Subsidiary |
Grimsby |
United Kingdom |
Personal Services |
|
|
|
|
Subsidiary |
Grimsby |
United Kingdom |
Personal Services |
|
|
|
|
Subsidiary |
Grimsby |
United Kingdom |
Personal Services |
1.0 |
3 |
|
|
Subsidiary |
Grimsby |
United Kingdom |
Personal Services |
0.1 |
8 |
|
|
Subsidiary |
Grimsby |
United Kingdom |
Personal Services |
0.3 |
4 |
|
|
Subsidiary |
Grimsby |
United Kingdom |
Personal Services |
0.0 |
|
|
|
Subsidiary |
Grimsby |
United Kingdom |
Personal Services |
|
|
|
|
Subsidiary |
Grimsby |
United Kingdom |
Nonclassifiable Industries |
|
130 |
|
|
Subsidiary |
Grimsby |
United Kingdom |
Personal Services |
16.7 |
93 |
|
|
Subsidiary |
Grimsby |
United Kingdom |
Personal Services |
14.7 |
60 |
|
|
Subsidiary |
Grimsby |
United Kingdom |
Personal Services |
4.4 |
29 |
|
|
Subsidiary |
Grimsby |
United Kingdom |
Nonclassifiable Industries |
|
|
|
|
Subsidiary |
Grimsby |
United Kingdom |
Computer Services |
|
|
|
|
Subsidiary |
Grimsby |
United Kingdom |
Nonclassifiable Industries |
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|
|
|
Subsidiary |
Grimsby |
United Kingdom |
Nonclassifiable Industries |
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|
|
|
Subsidiary |
Grimsby |
United Kingdom |
Nonclassifiable Industries |
|
|
|
|
Subsidiary |
Cambridge |
United Kingdom |
Business Services |
56.5 |
161 |
|
|
Subsidiary |
San Diego, CA |
United States |
Retail (Apparel) |
740.9 |
300 |
|
|
Branch |
San Diego, CA |
United States |
Retail (Apparel) |
13.0 |
70 |
|
|
Branch |
Chicago, IL |
United States |
Retail (Apparel) |
13.0 |
70 |
|
|
Branch |
New York, NY |
United States |
Retail (Apparel) |
9.3 |
50 |
|
|
Branch |
Franklin, TN |
United States |
Retail (Apparel) |
9.3 |
50 |
|
|
Branch |
Indianapolis, IN |
United States |
Retail (Apparel) |
9.3 |
50 |
|
|
Branch |
Ontario, CA |
United States |
Retail (Apparel) |
9.3 |
50 |
|
|
Branch |
San Diego, CA |
United States |
Retail (Apparel) |
7.4 |
40 |
|
|
Branch |
Lithonia, GA |
United States |
Retail (Apparel) |
7.4 |
40 |
|
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Branch |
Bloomington, MN |
United States |
Retail (Apparel) |
7.4 |
40 |
|
|
Branch |
Murfreesboro, TN |
United States |
Retail (Apparel) |
7.4 |
40 |
|
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Branch |
Hurst, TX |
United States |
Retail (Apparel) |
7.4 |
40 |
|
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Branch |
Fresno, CA |
United States |
Retail (Apparel) |
7.4 |
40 |
|
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Branch |
Westland, MI |
United States |
Retail (Apparel) |
6.7 |
36 |
|
|
Branch |
New Hartford, NY |
United States |
Retail (Apparel) |
6.1 |
33 |
|
|
Branch |
Mobile, AL |
United States |
Retail (Apparel) |
6.0 |
32 |
|
|
Branch |
Novi, MI |
United States |
Retail (Apparel) |
5.8 |
31 |
|
|
Branch |
San Diego, CA |
United States |
Retail (Apparel) |
5.6 |
30 |
|
|
Branch |
Hattiesburg, MS |
United States |
Retail (Apparel) |
5.6 |
30 |
|
|
Branch |
Concord, NC |
United States |
Retail (Apparel) |
5.6 |
30 |
|
|
Branch |
Tucson, AZ |
United States |
Retail (Apparel) |
5.6 |
30 |
|
|
Branch |
Fort Worth, TX |
United States |
Retail (Apparel) |
5.6 |
30 |
|
|
Branch |
Waipahu, HI |
United States |
Retail (Apparel) |
5.6 |
30 |
|
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Branch |
Orlando, FL |
United States |
Retail (Apparel) |
5.6 |
30 |
|
|
Branch |
Santa Clara, CA |
United States |
Retail (Apparel) |
5.6 |
30 |
|
|
Branch |
Wichita, KS |
United States |
Retail (Apparel) |
5.6 |
30 |
|
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Branch |
Lawrenceville, GA |
United States |
Retail (Apparel) |
5.6 |
30 |
|
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Branch |
Schaumburg, IL |
United States |
Retail (Apparel) |
5.6 |
30 |
|
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Branch |
Orlando, FL |
United States |
Retail (Apparel) |
5.6 |
30 |
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Branch |
Portage, MI |
United States |
Retail (Apparel) |
5.6 |
30 |
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Branch |
Cincinnati, OH |
United States |
Retail (Apparel) |
5.6 |
30 |
|
|
Branch |
Taylor, MI |
United States |
Retail (Apparel) |
5.6 |
30 |
|
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Branch |
Miami, FL |
United States |
Retail (Apparel) |
5.4 |
29 |
|
|
Branch |
Las Vegas, NV |
United States |
Retail (Apparel) |
5.4 |
29 |
|
|
Branch |
Jensen Beach, FL |
United States |
Retail (Apparel) |
5.2 |
28 |
|
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Branch |
Grand Rapids, MI |
United States |
Retail (Apparel) |
5.2 |
28 |
|
|
Branch |
Rockford, IL |
United States |
Retail (Apparel) |
5.2 |
28 |
|
|
Branch |
Joliet, IL |
United States |
Retail (Apparel) |
5.2 |
28 |
|
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Branch |
Greenwood, IN |
United States |
Retail (Apparel) |
5.0 |
27 |
|
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Branch |
El Centro, CA |
United States |
Retail (Apparel) |
5.0 |
27 |
|
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Branch |
Joplin, MO |
United States |
Retail (Apparel) |
5.0 |
27 |
|
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Branch |
Bloomington, IN |
United States |
Retail (Apparel) |
4.8 |
26 |
|
|
Branch |
Cypress, TX |
United States |
Retail (Apparel) |
4.8 |
26 |
|
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Branch |
Oklahoma City, OK |
United States |
Retail (Apparel) |
4.8 |
26 |
|
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Branch |
College Station, TX |
United States |
Retail (Apparel) |
4.8 |
26 |
|
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Branch |
Boynton Beach, FL |
United States |
Retail (Apparel) |
4.7 |
25 |
|
|
Branch |
Independence, MO |
United States |
Retail (Apparel) |
4.7 |
25 |
|
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Branch |
Toledo, OH |
United States |
Retail (Apparel) |
4.7 |
25 |
|
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Branch |
Greendale, WI |
United States |
Retail (Apparel) |
4.7 |
25 |
|
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Branch |
Lancaster, PA |
United States |
Retail (Apparel) |
4.7 |
25 |
|
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Branch |
Tucson, AZ |
United States |
Retail (Apparel) |
4.7 |
25 |
|
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Branch |
Concord, CA |
United States |
Retail (Apparel) |
4.7 |
25 |
|
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Branch |
Dawsonville, GA |
United States |
Retail (Apparel) |
4.7 |
25 |
|
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Branch |
Albany, NY |
United States |
Retail (Apparel) |
4.7 |
25 |
|
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Branch |
Orland Park, IL |
United States |
Retail (Apparel) |
4.7 |
25 |
|
|
Branch |
Hanover, MD |
United States |
Retail (Apparel) |
4.7 |
25 |
|
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Branch |
Greenville, SC |
United States |
Retail (Apparel) |
4.7 |
25 |
|
|
Branch |
Friendswood, TX |
United States |
Retail (Apparel) |
4.7 |
25 |
|
|
Branch |
Amarillo, TX |
United States |
Retail (Apparel) |
4.7 |
25 |
|
|
Branch |
Mays Landing, NJ |
United States |
Retail (Apparel) |
4.7 |
25 |
|
|
Branch |
Brandon, FL |
United States |
Retail (Apparel) |
4.7 |
25 |
|
|
Branch |
Brookfield, WI |
United States |
Retail (Apparel) |
4.7 |
25 |
|
|
Branch |
Merrillville, IN |
United States |
Retail (Apparel) |
4.7 |
25 |
|
|
Branch |
Temecula, CA |
United States |
Retail (Apparel) |
4.7 |
25 |
|
|
Branch |
Fayetteville, NC |
United States |
Retail (Apparel) |
4.7 |
25 |
|
|
Branch |
Tupelo, MS |
United States |
Retail (Apparel) |
4.7 |
25 |
|
|
Branch |
Roseville, CA |
United States |
Retail (Apparel) |
4.7 |
25 |
|
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Branch |
Elizabeth, NJ |
United States |
Retail (Apparel) |
4.7 |
25 |
|
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Branch |
San Antonio, TX |
United States |
Retail (Apparel) |
4.5 |
24 |
|
|
Branch |
Bakersfield, CA |
United States |
Retail (Apparel) |
4.5 |
24 |
|
|
Branch |
Tallahassee, FL |
United States |
Retail (Apparel) |
4.5 |
24 |
|
|
Branch |
Branson, MO |
United States |
Retail (Apparel) |
4.5 |
24 |
|
|
Branch |
Newington, NH |
United States |
Retail (Apparel) |
4.5 |
24 |
|
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Branch |
King Of Prussia, PA |
United States |
Retail (Apparel) |
4.5 |
24 |
|
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Branch |
Fairview Heights, IL |
United States |
Retail (Apparel) |
4.5 |
24 |
|
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Branch |
Jacksonville, FL |
United States |
Retail (Apparel) |
4.5 |
24 |
|
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Branch |
Sarasota, FL |
United States |
Retail (Apparel) |
4.3 |
23 |
|
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Branch |
Riverhead, NY |
United States |
Retail (Apparel) |
4.3 |
23 |
|
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Branch |
Gretna, LA |
United States |
Retail (Apparel) |
4.3 |
23 |
|
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Branch |
Mcallen, TX |
United States |
Retail (Apparel) |
4.1 |
22 |
|
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Branch |
Aiea, HI |
United States |
Retail (Apparel) |
4.1 |
22 |
|
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Branch |
Chattanooga, TN |
United States |
Retail (Apparel) |
4.1 |
22 |
|
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Branch |
Cape Girardeau, MO |
United States |
Retail (Apparel) |
4.1 |
22 |
|
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Branch |
Rochester, NY |
United States |
Retail (Apparel) |
4.1 |
22 |
|
|
Branch |
Tampa, FL |
United States |
Retail (Apparel) |
4.1 |
22 |
|
|
Subsidiary |
Bedworth |
United Kingdom |
Insurance (Accident and Health) |
|
200 |
|
|
Subsidiary |
London |
United Kingdom |
Insurance (Accident and Health) |
280.8 |
151 |
|
|
Subsidiary |
London |
United Kingdom |
Miscellaneous Financial Services |
0.1 |
|
|
|
Subsidiary |
Wimbledon |
United Kingdom |
Nonclassifiable Industries |
|
|
|
|
Subsidiary |
Wimbledon |
United Kingdom |
Nonclassifiable Industries |
|
|
|
|
Subsidiary |
Wimbledon |
United Kingdom |
Nonclassifiable Industries |
|
|
|
|
Subsidiary |
Wimbledon |
United Kingdom |
Nonclassifiable Industries |
|
|
|
|
Subsidiary |
Wimbledon |
United Kingdom |
Miscellaneous Financial Services |
|
|
|
|
Subsidiary |
London |
United Kingdom |
Miscellaneous Financial Services |
3.6 |
|
|
|
Subsidiary |
London |
United Kingdom |
Insurance (Accident and Health) |
0.1 |
|
|
|
Subsidiary |
Wimbledon |
United Kingdom |
Nonclassifiable Industries |
|
|
|
|
Subsidiary |
|
United Kingdom |
Nonclassifiable Industries |
|
|
|
|
Subsidiary |
Wimbledon |
United Kingdom |
Insurance (Accident and Health) |
|
|
|
|
Subsidiary |
Edinburgh |
United Kingdom |
|
|
|
|
|
Subsidiary |
Peabody, MA |
United States |
Auto and Truck Parts |
|
129 |
|
|
Subsidiary |
Mill Valley, CA |
United States |
Consumer Financial Services |
0.8 |
100 |
|
|
Division |
Summit, NJ |
United States |
Retail (Technology) |
17.2 |
50 |
|
|
Subsidiary |
New York, NY |
United States |
Retail (Catalog and Mail Order) |
|
|
|
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Division |
Summit, NJ |
United States |
Software and Programming |
|
|
|
|
Subsidiary |
Centerville, UT |
United States |
Retail (Specialty) |
7.9 |
65 |
|
|
Subsidiary |
London |
United Kingdom |
Retail (Apparel) |
8.7 |
62 |
|
|
Subsidiary |
Woburn, MA |
United States |
Retail (Home Improvement) |
|
40 |
|
|
Subsidiary |
Wixom, MI |
United States |
Construction - Supplies and Fixtures |
10.6 |
38 |
|
|
Subsidiary |
Prinsenbeek, Noord-Brabant |
Netherlands |
Miscellaneous Capital Goods |
|
10 |
|
|
Subsidiary |
Bensheim, Hessen |
Germany |
Miscellaneous Capital Goods |
|
133 |
|
|
Subsidiary |
Calgary, AB |
Canada |
Miscellaneous Fabricated Products |
|
10 |
|
|
Subsidiary |
West Kensington |
United Kingdom |
Healthcare Facilities |
|
|
|
|
Subsidiary |
Dudley |
United Kingdom |
Healthcare Facilities |
7.5 |
84 |
|
|
Subsidiary |
West Kensington |
United Kingdom |
Nonclassifiable Industries |
|
|
|
|
Subsidiary |
London |
United Kingdom |
Nonclassifiable Industries |
|
|
|
|
Subsidiary |
London |
United Kingdom |
Commercial Banks |
|
|
|
|
Subsidiary |
Worcester |
United Kingdom |
Commercial Banks |
|
|
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
180.5 |
5,637 |
|
|
Subsidiary |
West Kensington |
United Kingdom |
Commercial Banks |
|
|
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
5.4 |
170 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
6.7 |
130 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
5.6 |
130 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
1.6 |
50 |
|
|
Subsidiary |
London |
United Kingdom |
Nonclassifiable Industries |
|
|
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
2.3 |
51 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
2.3 |
70 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
1.5 |
55 |
|
|
Subsidiary |
West Kensington |
United Kingdom |
Healthcare Facilities |
|
|
|
|
Subsidiary |
Stoke On Trent |
United Kingdom |
Schools |
3.6 |
73 |
|
|
Subsidiary |
|
United Kingdom |
Nonclassifiable Industries |
|
|
|
|
Subsidiary |
London |
United Kingdom |
Schools |
2.7 |
58 |
|
|
Subsidiary |
West Kensington |
United Kingdom |
Nonclassifiable Industries |
|
|
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
17.9 |
257 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
7.7 |
86 |
|
|
Subsidiary |
York |
United Kingdom |
Healthcare Facilities |
2.7 |
25 |
|
|
Subsidiary |
West Kensington |
United Kingdom |
Commercial Banks |
|
|
|
|
Subsidiary |
London |
United Kingdom |
Commercial Banks |
|
|
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
40.4 |
937 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
10.3 |
184 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
4.7 |
103 |
|
|
Subsidiary |
Leicester |
United Kingdom |
Healthcare Facilities |
4.0 |
89 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
2.8 |
54 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
2.0 |
49 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
3.3 |
72 |
|
|
Subsidiary |
Gloucester |
United Kingdom |
Healthcare Facilities |
2.2 |
55 |
|
|
Subsidiary |
West Kensington |
United Kingdom |
Healthcare Facilities |
1.6 |
50 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
1.9 |
44 |
|
|
Subsidiary |
Pontefract |
United Kingdom |
Healthcare Facilities |
1.4 |
37 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
1.4 |
33 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
1.4 |
30 |
|
|
Subsidiary |
Stoke On Trent |
United Kingdom |
Healthcare Facilities |
1.0 |
28 |
|
|
Subsidiary |
West Kensington |
United Kingdom |
Commercial Banks |
|
|
|
|
Subsidiary |
Swansea |
United Kingdom |
Healthcare Facilities |
73.6 |
1,770 |
|
|
Subsidiary |
West Kensington |
United Kingdom |
Nonclassifiable Industries |
|
|
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
4.4 |
163 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
5.2 |
139 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
4.7 |
111 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
4.5 |
103 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
1.5 |
66 |
|
|
Subsidiary |
Thetford |
United Kingdom |
Healthcare Facilities |
2.2 |
44 |
|
|
Subsidiary |
Dereham |
United Kingdom |
Healthcare Facilities |
0.8 |
20 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
0.4 |
13 |
|
|
Subsidiary |
Bracknell |
United Kingdom |
Healthcare Facilities |
6.6 |
50 |
|
|
Subsidiary |
London |
United Kingdom |
Healthcare Facilities |
1.3 |
42 |
|
|
Subsidiary |
London |
United Kingdom |
Real Estate Operations |
0.1 |
|
|
|
Subsidiary |
Prinsenbeek, Noord-Brabant |
Netherlands |
Miscellaneous Financial Services |
|
|
|
|
Subsidiary |
Santo Domingo |
Dominican Republic |
Airlines |
|
|
Executives Report
|
Deckers Outdoor
Corporation Announces Appointment of Two New Board Members
Business Wire: 16 September 2011
[What follows is the full text of the news story.]
GOLETA,
Calif.--(BUSINESS WIRE)-- Deckers Outdoor Corporation (NASDAQGS: DECK)
announced today that James E. Quinn and Lauri M. Shanahan have been appointed
to the Deckers Outdoor Corporation Board of Directors.
James Quinn is
president of Tiffany & Co. [NYSE: TIF]. As president, Mr. Quinn oversees
retail sales in Tiffany stores in more than 50 countries, with responsibility
for the companyοΏ½s global expansion strategy, including the significant
Tiffany presence established throughout Asia. Mr. Quinn joined Tiffany in 1986
and held a series of significant positions including vice chairman prior to his
appointment as president in 2003. He was named to TiffanyοΏ½s board of
directors in 1995.
Lauri Shanahan is
a seasoned retail executive with over 19 years of senior level experience
across global, multi-channel, multi-brand enterprise and other specialty
retail. Ms. Shanahan joined The Gap Inc. [NYSE: GPS] in 1992 and served in
numerous leadership roles including chief administrative officer, chief legal
officer and corporate secretary during her sixteen year career with the
company. She currently serves on the board of directors of Charlotte Russe
Holding, Inc. a growing specialty retailer of fashionable, value-priced apparel
and accessories with revenues of $900 million and over 500 stores. In addition,
Ms. Shanahan is a principal with Maroon Peak Advisors which provides a broad
range of advisory services in the retail and consumer products sector.
Angel Martinez,
President, Chief Executive Officer and Chair of the Board of Directors said,
οΏ½We are very excited to welcome these two distinguished individuals to our
Board of Directors. Tiffany & Co. is recognized as one of the strongest and
most successful luxury retailers in the world today, and JimοΏ½s addition will
help direct our organizationοΏ½s strategic direction, particularly overseas.
Similarly, LauriοΏ½s strong business acumen and broad experience in the retail
industry brings an essential resource to the Board. We look forward to
benefiting from their combined expertise and believe that they will be
extremely effective in helping the company craft its corporate strategy for the
global marketplace.οΏ½
Deckers Outdoor
Corporation strives to be a premier lifestyle marketer that builds niche brands
into global market leaders by designing and marketing innovative, functional
and fashion-oriented footwear developed for both high performance outdoor
activities and everyday casual lifestyle use. UGGοΏ½ Australia, SanukοΏ½,
TevaοΏ½, SimpleοΏ½ Shoes, TSUBOοΏ½, AhnuοΏ½ and MOZOοΏ½ are registered
trademarks of Deckers Outdoor Corporation.
Deckers Outdoor Corporation
Tom George, 805-967-7611
Chief Financial Officer
or
Investor Relations:
ICR, Inc.
Brendon Frey, 203-682-8200
Source: Deckers
Outdoor Corporation
Retailers likely
to hire less seasonal workers, report says
Journal-News (Hamilton, OH): 13 September 2011
[What follows is the full text of the news story.]
Sept. 13--It's no
secret competition is fierce in the job market these days, with unemployment
holding at slightly higher than 9 percent nationally through August.
The retail scene
in particular has seen decline as of late, with the U.S. Labor Department
recording a 7.8 percent dip between July and August.
However, as with
the cyclical nature of a customer-driven market, hiring is expected to pick up
in the next few weeks as stores ramp up production and sales for the holidays.
But, according to
a survey released last week, this year's Christmas job market may not be as
merry and bright.
The survey --
conducted by the Hay Group, a global management consultant firm -- found that
although retailers expect holiday sales to increase this year, most plan to
hire the same amount or fewer seasonal workers as compared to 2010.
The information
was based on responses from 21 major U.S. retailers, including Charlotte Russe,
Coldwater Creek, DSW, Macy's and Pier 1 Imports. Two-thirds of those polled
said they plan to hire similar numbers of seasonal workers to 2010, while a
quarter said they would hire fewer.
Lewis Taulbee,
general manager at Cincinnati Premium Outlets in Monroe, said the outlet mall
is a great source for people seeking seasonal holiday work.
"While we do
not have the specifics yet on each store's hiring needs, we do anticipate the
center as a whole will offer more jobs for the holidays than last year given
that we have new stores that have recently opened or will be opening
soon," Taulbee said.
Kathy Grannis,
spokeswoman for Washington, D.C.-based National Retail Federation, agreed the
overall theme of retailers in the last couple of years is to rely on existing
staff.
"In any
business model, it is more affordable to extend the hours of those employees on
the payroll than to hire new ones," Grannis said. "A lot of those
working in retail love the extra pay -- for them it is a great time; it means
more commission and possible overtime."
The survey also
found that 48 percent of retailers would pay seasonal workers less than
permanent workers in the same position, compared with 25 percent last year.
However, 19 percent of retailers said they plan a modest pay raise of 5 cents
to 30 cents per hour for seasonal employees.
But even though
fewer people may be hired, there will be jobs available this season.
Macy's spokeswoman
Andrea Schwartz said the store started hiring in the last week or two at all
locations, including Northgate Mall in Colerain and Tri-County Mall in
Springdale.
"What we're basically
hiring for now is for a lot of behind the scenes (jobs), like the stock room,
pricing," Schwartz said. "The holidays are usually our biggest
time."
Most retailers
said they already were seeing a steady level of seasonal job applicants, and 21
percent reported seeing between 5 and 25 percent more than last year.
Given this level
of competition, Grannis advised job seekers to get their applications in early.
"Large stores
will begin the hiring process in September and October," she said, noting
the value of social media pages as resources. "Check Twitter and Facebook,
and even the store's website will have postings."
In Fairfield Twp.,
Home Depot said it typically doesn't increase its force during the traditional
holiday season. During spring, the company hires about 60,000 seasonal workers
across its stores, according to Steve Holmes, senior manager of corporate
communications.
Holmes said those
seeking seasonal work at Home Depot should apply in January.
___
(c)2011 the
Hamilton JournalNews (Hamilton, Ohio)
Visit the Hamilton
JournalNews (Hamilton, Ohio) at www.journal-news.com
Distributed by MCT
Information Services
TEMECULA:
Promenade mall adding tenants
Press-Enterprise (Riverside, CA): 27 July 2011
[What follows is the full text of the news story.]
July 27--Promenade
Temecula will welcome a roster of new tenants this fall led by popular youth
apparel retailer H&M.
All together,
seven businesses will join the mall's tenant list in time for the 2011 holiday
shopping season, taking up more than 45,000 square feet of space.
Sweden-based
H&M will open a two-level store in late November in a 22,150-square-foot
space near the plaza, a courtyard area that joins the enclosed mall with an
outdoor shopping area that was added in 2009.
H&M will take
over space currently occupied by Charlotte Russe, along with vacant retail and
other floor space. Charlotte Russe will relocate to a store previously occupied
by now-defunct Corona-based retailer Anchor Blue. The H&M store will have
interior and exterior entrances along with in-store elevators and escalators,
said the mall's general manager, Jeff Kurtz. It'll be a huge store that
"serves our demographic perfectly," he said.
Among other
newcomers, Oak West Shoes will move into the upper level near Macy's Men, Children
& Home store. Aros Massage will open that same month in a space nearby.
Charming Charlie,
an accessories store listed as one of the 10 hottest retailers of 2010 by the
International Council of Shopping Centers, will open in September. It will be
the retailer's third Southern California location. Tokyo Japanese Lifestyle, a
boutique offering Japanese pop culture collectibles and accessories, will open
shortly before the holidays on the upper level across from Ben Bridge Jewelers.
And Teavana, a national tea-shop chain, will open this fall across from Coach
along Promenade Way.
The mall, which is
owned by Ohio-based Forest City Enterprises, also will expand its dining
options, with Chronic Tacos Cantina opening sometime before the holidays in a
space next to California Pizza Kitchen. The fast-casual restaurant, which has
two other Southern California locations, offers Mexican dishes along with
burgers, wings and other casual fare, along with a full bar. Suki Hana will
debut in the mall's food court with low-price sushi, tempura and teriyaki
dishes.
Toy World Depot,
an independent toy store that moved into the mall a couple of years ago, also
will relocate in October to a larger space in the mall.
This fall's
incoming class of new retailers is larger than last year's in terms of total
square footage. Mall additions announced last year moved into about 32,000
square feet. Those retailers included Forever 21, an H&M competitor, which
opened a 19,000-square-foot store, as well as men's retailer Bobby Chan, Rocky
Mountain Chocolate Factory and others.
Kurtz said fall is
a busy time for leasing retailers, who want to position themselves in time for
the holiday shopping rush. He said a few additional retailers could be
announced in the coming weeks.
The mall, which reported
an occupancy rate of about 95 percent last fall and about 98 percent in May,
"won't have much space left" once the new string of tenants moves in,
Kurtz said.
Reach Tiffany Ray
at 951-368-9559 or tray@PE.com.
___
To see more of The
Press-Enterprise or to subscribe to the newspaper, go to http://www.pe.com.
Copyright (c)
2011, The Press-Enterprise, Riverside, Calif.
Distributed by
McClatchy-Tribune Information Services.
For more information
about the content services offered by McClatchy-Tribune Information Services
(MCT), visit www.mctinfoservices.com, e-mail services@mctinfoservices.com, or
call 866-280-5210 (outside the United States, call +1 312-222-4544)
Stores Demand
Mannequins With Personality (Heads Optional)
New York Times: 16 June 2011
[What follows is the full text of the news story.]
''One size fits
all'' no longer applies to mannequins.
With retailers
fighting for customers in the sluggish economic recovery, the generic white,
hairless, skinny mannequin is being pushed aside by provocative alternatives
that entice shoppers with muscles, unusual poses, famous faces and lifelike
bodies.
''The customer
shops from the mannequin,'' said Jenny Ming, chief executive of the youth
retailer Charlotte Russe, where poses for new mannequins are drawn from
red-carpet celebrity pictures, and feature pierced ears, articulated fingers
for rings and flexed feet for high heels. ''The No. 1 reason our customers come
in is because they see something they like.''
The Disney Stores
chain has added little-boy figurines that fly from the ceiling and little-girl
ones that curtsey. Nike has made its mannequins taller, and added about 35
athletic poses. Armani Exchange has ordered models that will lie down to help
shoppers imagine wearing lingerie. A new accessories-only store by Guess
features glossy black mannequins in model-like poses on an actual runway, while
Ralph Lauren's new women's store in Manhattan commissioned mannequins with the
face of the model Yasmin Le Bon.
It is all part of
a new appreciation for old-fashioned window dressing. During the 1990s and
early 2000s, many stores cut costs by hiring inexperienced workers to outfit
their mannequins, and generic was best as the dummies needed to be dummy-proof.
But with shoppers getting increasingly persnickety, retailers are expecting
their store displays to serve as ''come on in'' advertising, with the
made-to-order mannequins sending a very specific message.
''They personify
their brand with their mannequin statements, and they're looking for something
a little more customized or unique,'' said Peter Huston, brand president at
Fusion Specialties, a mannequin company in Colorado whose sales, almost all of
custom mannequins, rose 48 percent last year.
One of Fusion's
customers is Athleta, the sportswear company owned by Gap Inc. It commissioned
mannequins based on a catalog model, Danielle Halverson, a track-and-field
athlete training for the Olympics.
Fusion Specialties
digitally scanned Ms. Halverson in stationary and action sequences. Then, over
about two weeks, seven sculptors created clay renderings of the 3-D digital
scans that ''hand-etched her from a tiny pile of clay down to the tiny
delineations of the sinew in the muscle,'' said Tess Roering, vice president
for marketing at Athleta, which opened its first physical stores this year.
After making more
prototypes, Fusion produced the Dani-quin, as Athleta executives started
calling the mannequin, in five variations. The running pose, especially, looks
realistic: she is in midstride, with only her left toes on the ground. The
Dani-quin, by the way, is headless.
''We wanted to
make sure that our customers weren't worrying about the hair, or anything
else,'' Ms. Roering said.
Michael Steward,
executive vice president of Rootstein USA, which makes mannequins for stores
like Ralph Lauren, Chanel and Neiman Marcus, said the newfound appreciation for
specialty mannequins came as many retailers reassessed the market.
''A lot of people
have decided they have to specialize,'' Mr. Steward said. ''Nothing sells the
clothing like a mannequin: it's a subliminal message from the retailer, the
first thing people see in the window or in a department when they go into the
store.''
When mannequins
first were used, they were basically molded dress forms to which clothing
makers pinned garments. By the 1920s, they had developed into torsos with
joints attached, and slowly started to get wigs, makeup and glass eyes. By the
1960s, when some women stopped wearing bras, ''you started to have nipples on
mannequins,'' said Linda Scott, a professor studying consumer culture at the
Said Business School at Oxford. ''That was a big shift,'' she said.
But in the 1970s,
as retail chains expanded nationally and cost pressures increased, mannequins
shifted back toward the generic. ''That's when you saw mannequins that did not
require makeup, did not require wigs, or so much attention to detail, to reduce
the costs,'' said Mr. Huston, the Fusion executive.
During the
recession, companies curtailed spending wherever they could, and mannequin
sales slowed. But after shedding unprofitable brands or merchandise during the
recession, the retailers are focused on a specific customer and a particular
brand position, and they want their windows to reflect that with custom
mannequins.
''Over the past
two years, everyone has really had to reassess their business and their client
base,'' Mr. Steward said, ''and the market is so competitive that people are
just focusing on what they do well, and what they sell.''
Prices of custom
mannequins run from about $400 to $1,200 a mannequin, not including the $15,000
or more that places like Fusion charge for development. A mannequin makeover
can cost a national chain millions.
Is it money well
spent? Not always, said Professor Scott, because shoppers are an unpredictable
lot. ''Sometimes they're imagining themselves in the clothes, sometimes they're
just entertaining themselves on an evening walk, sometimes they're standing
there with a girlfriend talking about how stupid the clothes look,'' she said.
And Mr. Steward,
the executive at Rootstein, said retailers sometimes ask too much of their
mannequins.
''Everyone thinks
they're going to reinvent the wheel,'' he said. ''As I always say, there's only
so many things a mannequin can do: would you like two heads with that, madam?''
PHOTOS: Bets
Lundeen, a sculptor in Colorado, preparing a mannequin that will strike a
golfing pose. (A1); Robert Roybal, left, and Greg Amanti preparing a fiberglass
mannequin at Fusion Specialties in Broomfield, Colo.; Sculptors refine Fusion's
custom mannequins to clients' specifications. Some want avant-garde, others
suburban chic. (PHOTOGRAPHS BY KEVIN MOLONEY FOR THE NEW YORK TIMES) (A3)
Irvine Spectrum: 7
store openings
Orange County Register (CA): 08 June 2011
[What follows is the full text of the news story.]
June 08--Skinfood,
a food cosmetic company, will soon open its first U.S. store. Under the motto
of "good food for health is also good for the skin," the Skinfood
cosmetic line features extracts from brown sugar, rice, kiwi, wine, ginseng,
tomato, avocado, milk and honey. Besides cosmetics, Skinfood also sells hair
products and skincare for babies and men.
Charlotte Russe,
which targets teen girls and women in their early 20s, opened a 5,764
square-foot-store last month in the former Maki Maki restaurant. The shop has a
new modern look and carries clothes made with better fabrics and consistent
fits and improved and expanded mix of jewelry, accessories and footwear.
(View slideshow of
these seven Irvine Spectrum stores.)
-
More O.C. retail
news:
--O.C. mall to
close food court
--Clothing company
with Tori Spelling line files for bankruptcy
--JCPenney closing
stores
--Are 14 big O.C.
malls thriving or struggling?
-
Oro Gold Cosmetics
plans to open its first O.C. store this fall. It specializes in a variety of
skin and body care products as well as makeup using 24K gold. For example, it
says its anti-aging eye serum contains 24K gold that helps prevent sagging
skin; stimulates cellular growth to regenerate healthy, firm skin cells; and
decreases skin inflammation, thereby reducing age spots, according to its
website. The eye serum sells for about $300.
J.R. Watkins
Naturals will open its first store this fall. Watkins uses natural ingredients
in its lines of personal care such as lip balms and body lotions; home care
such as room sprays and bathroom cleaners; and remedies for coughs, colds and
upset stomachs, for example.
DownEast Basics,
which will open its first California store this summer, sells tees, tops,
dresses, skirts, sweaters, swimwear and accessories.
Artbox will open
in the fall. It's a Korean-based retailer of greeting cards and gift wrap.
The Yankee Candle
Company will open a store this fall. With more than 150 fragrances, it offers
candle and home scents. Yankee Candle closed its Illuminations retail chain in
2009.
Follow OC Retail
blog on Facebook to get other retail news, deals and events.
More O.C. retail
news:
--O.C. mall to
close food court
--Clothing company
with Tori Spelling line files for bankruptcy
--JCPenney closing
stores
--Are 14 big O.C.
malls thriving or struggling?
--Creator of O.C.
clothing label found dead
--O.C. retail
index rises 4th consecutive quarter
--Recalls: Costco,
Target, Walmart, Amazon, Toys'R'Us
--Big Lots closes
O.C. store
--O.C. Mervyns
soon to be demolished for Costco
--2 big retailers
open in O.C.
--South Coast
Plaza: opening dates for 7 stores
--Clothing
retailer going out of business
--Ugg owner to buy
O.C. sandal brand
--3 O.C. exclusive
store openings at Fashion Island, The Block
--Maker of crafts
sold at Walmart, Jo-Ann files for bankruptcy
--Blockbuster
debuts single-day rental pricing
--Gap to open
different type of store in O.C.
___
To see more of The
Orange County Register, or to subscribe to the newspaper, go to
http://www.ocregister.com.
Copyright (c)
2011, The Orange County Register, Santa Ana, Calif.
Distributed by
McClatchy-Tribune Information Services.
For more
information about the content services offered by McClatchy-Tribune Information
Services (MCT), visit www.mctinfoservices.com, e-mail
services@mctinfoservices.com, or call 866-280-5210 (outside the United States,
call +1 312-222-4544)
Maurices has soft
opening today
Northwest Florida Daily News (Fort Walton Beach): 25 May 2011
[What follows is the full text of the news story.]
May 25--MARY
ESTHER -- Young women looking for the latest fashions now have a new store to
choose from.
Maurices at Santa
Rosa Mall opens at 5 p.m. today with a soft opening. The store will have a
buy-one, get 50 percent off a second sale and chances for customers to win one
of four $100 shopping sprees.
The store's grand
opening is scheduled for Saturday.
"It's a great
addition to the mall," said Julie Harrell, general manager of Santa Rosa
Mall. "They talk about being able to accommodate size 1 to 24. That's kind
of something for every female out there, almost. It's a big addition, and it
gives just another element of variety, another element of selection for our
shoppers."
The new maurices
will be near Kay Jewelers between rue21 and Charlotte Russe.
Maurices is based
in Duluth, Minn., and has more than 750 stores in 44 states. The mall store is
one of 50 that are expected to open this year.
Felicia Holstein,
maurices' store manager, said customer service is one of the main things that
sets it apart from other similar stores.
"We actually
call it customer obsession," Holstein said. "I really think it's
going to almost shock our public here that's used to shopping at other places in
the mall because it really is like having a personal shopper with you while
you're shopping.
"We actually
strive to be like the customer's best friend while they're in the store,"
she added. "It's like we're going to be honest with them about what looks good,
what doesn't. We're going to suggest other items and really be involved with
their whole experience."
With the addition
of maurices, Harrell said the mall is more than 80 percent leased. She said the
mall is in talks with stores to lease space near the front entrance and near
Belk, and hopes that announcements can be made in the next few months.
"We have a
couple of things in the works, but nothing that is far enough along to really
announce," Harrell said.
___
To see more of the
Northwest Florida Daily News or to subscribe to the newspaper, go to
http://www.nwfdailynews.com.
Copyright (c)
2011, Northwest Florida Daily News, Fort Walton Beach
Distributed by
McClatchy-Tribune Information Services.
For more
information about the content services offered by McClatchy-Tribune Information
Services (MCT), visit www.mctinfoservices.com, e-mail
services@mctinfoservices.com, or call 866-280-5210 (outside the United States,
call +1 312-222-4544)
Zale Appoints Senior
Leaders
Business Wire: 03 March 2011
[What follows is the full text of the news story.]
- Jeannie
Barsam named Senior Vice President, Merchandise Planning and Allocation
- Toyin Ogun
named Senior Vice President, Human Resources and Customer Service
DALLAS--(BUSINESS
WIRE)-- Zale Corporation (NYSE: ZLC) today announced the addition of two
experienced retail executives to fill critical roles on its senior leadership
team. Jeannie Barsam, with over 20 years of retail leadership experience in
merchandising and planning, has been named Senior Vice President, Merchandise
Planning and Allocation. Toyin Ogun, with over 25 years of diverse human
resources experience, has been named Senior Vice President, Human Resources and
Customer Service.
οΏ½Jeannie and
Toyin add both critical experience and depth to our leadership team,οΏ½ said
Theo Killion, Chief Executive Officer. οΏ½These appointments exemplify the
strategic investments we are making in organizational capability to drive our
turnaround initiatives.οΏ½
Ms. Barsam was
most recently Senior Vice President, Planning, Allocation and Company Planning
for Charlotte Russe. Prior to that, she served as Senior Vice President,
Inventory Management and Merchandise Systems at Talbots and Vice President,
Merchandise Planning and Allocation at Gap. Earlier in her career, she served
in merchandising and planning roles at MervynοΏ½s and Lane Bryant. She will
report to Matt Appel, Executive Vice President and Chief Financial Officer.
Prior to joining
Zale, Mr. Ogun was Senior Vice President, Human Resources at L.L. Bean where he
was responsible for all human resources activities and served in a leadership
role in IT integration, international and direct to business growth projects.
Prior to that, Mr. Ogun served as Senior Vice President, Human Resources at
Sears and earlier at Limited Brands. He will report to Theo Killion, Chief
Executive Officer.
About Zale
Corporation
Zale Corporation
is a leading specialty retailer of diamonds and other jewelry products in North
America, operating approximately 1,870 retail locations throughout the United
States, Canada and Puerto Rico, as well as online. Zale Corporation's brands
include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers,
Mappins Jewellers and Piercing Pagoda. Zale also operates online at
www.zales.com, www.zalesoutlet.com, www.gordonsjewelers.com,
www.peoplesjewellers.com and www.pagoda.com. Additional information on Zale
Corporation and its brands is available at www.zalecorp.com.
Zale Corporation
Roxane Barry, 972-580-4391
Director of Investor Relations
Source: Zale
Corporation
The Commercial
Appeal, Memphis, Tenn., Barbara Bradley column
Commercial Appeal (Memphis, TN): 27 February 2011
[What follows is the full text of the news story.]
Feb. 27--Are you
getting the pawed-over clearance sale blues? You should know there are deals on
new spring fashions, too.
Recently, I found
discounts of 10 percent at Anthropologie and Charlotte Russe; 12 percent at Banana
Republic; 13 percent at T.J. Maxx; 15 percent at Chico's, Kohl's, Lucky Brand,
Foot Locker and True Religion Jeans; and 20 percent at Ann Taylor.
The discounts were
for anything they sold on any day they were open (or when shopping online, of
course). I could get them by purchasing discount gift cards at sites such as
plasticjungle.com, giftcardrescue.com and giftcardgranny.com.
"It's
something unique and different," said consumer savings expert Andrea
Woroch of Santa Barbara, Calif. "It's been around a few years, but it's
growing in popularity. I think it will become the new online coupon."
Woroch explained
it. People get store gifts cards from friends and family. But maybe they don't
usually shop at those stores or they need cash more. So they sell their cards
at less than face value to websites that, in turn, sell them to folks like us
for a discount.
The cards are
worth from about $25 to about $500 at Gift Card Rescue, for example. Since they
are like cash, they can piggyback on just about any other sale or coupon at the
store.
And thanks to a
new federal law that became effective in August, prepaid cards can't expire for
at least five years after the card was issued or money was last loaded onto it,
according to the Federal Deposit Insurance Corp. website at
fdic.gov/consumers/consumer/news. (The Consumers Union says this new consumer
protection applies to cards purchased beginning on Aug. 22, 2010.) Also, the
law permits those sneaky "inactivity fees" only when a transaction
has not occurred for at least 12 months.
You can buy all
kinds of cards, including Target, Bass Pro Shops, Pier 1 Imports, Home Depot,
Walgreens and Sears, and save up to 59 percent depending on which card website
and store you choose. (You can also solicit bids from such sites to sell gift
cards you don't want.)
The worth of cards
sold at Plastic Jungle and Credit Card Rescue is guaranteed, and they pay
postage to send the cards to you. Gift Card Granny allows you to
comparison-shop among gift cards. You can sign up for e-mail alerts for stores
you like.
Plastic Jungle,
founded in 2006 and based in California, estimates there's about $30 billion in
unredeemed gift cards floating around. That's a lot of value to leave in our
sock drawers.
Woroch, 29, said
her online bargain shopping expertise began as a college student in Albany
N.Y., when she racked up credit card debt. She came to realize she could
maintain her lifestyle without too many sacrifices by becoming savvy about
online deals and store coupons.
She later did
public relations marketing for online coupon websites and now shares her advice
on major networks and talk shows and at her new website andreaworoch.com.
Fashion editor
Barbara Bradley can be reached at 529-2370 or bradley@commercialappeal.com.
TIP JAR
Trish McEvoy's old
"press-and-wiggle" brush (the straight-edged No. 11) dipped in dark
eyeshadow is still the surest way I know for an amateur to get a thin, precise
eyeliner application. But the brush often drops powder on one's cheek. A makeup
artist here at Joseph showed me how to prevent this. Put a drop of water on the
back of your hand; barely moisten the tip of the brush; push brush into the
shadow; tap off excess powder; and press and wiggle it along your upper lash
line. Voila! Lovely definition. No mess.
-- Barbara Bradley
Do you have a tip
on fashion, beauty or clothing care? E-mail it to bradley@commercial
appeal.com. Include your name and where you live.
To see more of The
Commercial Appeal or to subscribe to the newspaper, go to
http://www.commercialappeal.com.
Copyright (c)
2011, The Commercial Appeal, Memphis, Tenn.
Distributed by
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call +1 312-222-4544)
Standard & Poors
|
United
States of America Long-Term Rating Lowered To 'AA+' Due To Political Risks,
Rising Debt Burden; Outlook Negative |
|
Publication
date: 05-Aug-2011 20:13:14 EST |
·
We have lowered our long-term
sovereign credit rating on the United States of America to 'AA+' from 'AAA' and
affirmed the 'A-1+' short-term rating.
·
We have also removed both the short- and long-term ratings from
CreditWatch negative.
·
The downgrade reflects our
opinion that the fiscal consolidation plan that Congress and the Administration
recently agreed to falls short of what, in our view, would be necessary to
stabilize the government's medium-term debt dynamics.
·
More broadly, the downgrade
reflects our view that the effectiveness, stability, and predictability of
American policymaking and political institutions have weakened at a time of
ongoing fiscal and economic challenges to a degree more than we envisioned when
we assigned a negative outlook to the rating on April 18, 2011.
·
Since then, we have changed our
view of the difficulties in bridging the gulf between the political parties
over fiscal policy, which makes us pessimistic about the capacity of Congress
and the Administration to be able to leverage their agreement this week into a
broader fiscal consolidation plan that stabilizes the government's debt
dynamics any time soon.
·
The outlook on the long-term
rating is negative. We could lower the long-term rating to 'AA' within the next
two years if we see that less reduction in spending than agreed to, higher
interest rates, or new fiscal pressures during the period result in a higher
general government debt trajectory than we currently assume in our base case.
TORONTO (Standard &
Poor's) Aug. 5, 2011--Standard & Poor's Ratings Services said today that it
lowered its long-term sovereign credit rating on the United States of America
to 'AA+' from 'AAA'. Standard & Poor's also said that the outlook on the long-term
rating is negative. At the same time, Standard & Poor's affirmed its 'A-1+'
short-term rating on the U.S. In addition, Standard & Poor's removed both
ratings from CreditWatch, where they were placed on July 14, 2011, with
negative implications.
The transfer and
convertibility (T&C) assessment of the U.S.--our assessment of the
likelihood of official interference in the ability of U.S.-based public- and
private-sector issuers to secure foreign exchange for
debt service--remains
'AAA'.
We lowered our long-term
rating on the U.S. because we believe that the prolonged controversy over
raising the statutory debt ceiling and the related fiscal policy debate
indicate that further near-term progress containing the growth in public
spending, especially on entitlements, or on reaching an agreement on raising
revenues is less likely than we previously assumed and will remain a
contentious and fitful process. We also believe that the fiscal consolidation
plan that Congress and the Administration agreed to this week falls short of
the amount that we believe is necessary to stabilize the general government
debt burden by the middle of the decade.
Our lowering of the
rating was prompted by our view on the rising public debt burden and our
perception of greater policymaking uncertainty, consistent with our criteria
(see "Sovereign Government Rating Methodology and
Assumptions ," June 30, 2011, especially Paragraphs 36-41).
Nevertheless, we view the U.S. federal government's other economic, external,
and monetary credit attributes, which form the basis for the sovereign rating,
as broadly unchanged.
We have taken the ratings
off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment
of 2011 has removed any perceived immediate threat of payment default posed by
delays to raising the government's debt ceiling. In addition, we believe that
the act provides sufficient clarity to allow us to evaluate the likely course
of U.S. fiscal policy for the next few years.
The political
brinksmanship of recent months highlights what we see as America's governance
and policymaking becoming less stable, less effective, and less predictable
than what we previously believed. The statutory debt ceiling and the threat of
default have become political bargaining chips in the debate over fiscal
policy. Despite this year's wide-ranging debate, in our view, the differences
between political parties have proven to be extraordinarily difficult to
bridge, and, as we see it, the resulting agreement fell well short of the
comprehensive fiscal consolidation program that some proponents had envisaged
until quite recently. Republicans and Democrats have only been able to agree to
relatively modest savings on discretionary spending while delegating to the
Select Committee decisions on more comprehensive measures. It appears that for
now, new revenues have dropped down on the menu of policy options. In addition,
the plan envisions only minor policy changes on Medicare and little change in
other entitlements,
the containment of which
we and most other independent observers regard as key to long-term fiscal
sustainability.
Our opinion is that
elected officials remain wary of tackling the structural issues required to
effectively address the rising U.S. public debt burden in a manner consistent
with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and
Assumptions," June 30, 2011, especially Paragraphs 36-41). In
our view, the difficulty in framing a consensus on fiscal policy weakens the
government's ability to manage public finances and diverts attention from the
debate over how to achieve more balanced and dynamic economic growth in an era
of fiscal stringency and private-sector deleveraging (ibid). A new political
consensus might (or might not) emerge after the 2012 elections, but we believe
that by then, the government debt burden will likely be higher, the needed
medium-term fiscal adjustment potentially greater, and the inflection point on
the U.S. population's demographics and other age-related spending drivers
closer at hand (see "Global Aging 2011: In The U.S., Going Gray Will Likely
Cost Even More Green, Now," June 21, 2011).
Standard & Poor's
takes no position on the mix of spending and revenue measures that Congress and
the Administration might conclude is appropriate for putting the U.S.'s
finances on a sustainable footing.
The act calls for as much
as $2.4 trillion of reductions in expenditure growth over the 10 years through
2021. These cuts will be implemented in two steps: the $917 billion agreed to
initially, followed by an additional $1.5 trillion that the newly formed
Congressional Joint Select Committee on Deficit Reduction is supposed to
recommend by November 2011. The act contains no measures to raise taxes or
otherwise enhance revenues, though the committee could recommend them.
The act further provides
that if Congress does not enact the committee's recommendations, cuts of $1.2
trillion will be implemented over the same time period. The reductions would
mainly affect outlays for civilian discretionary spending, defense, and
Medicare. We understand that this fall-back mechanism is designed to encourage
Congress to embrace a more balanced mix of expenditure savings, as the
committee might recommend.
We note that in a letter
to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated
total budgetary savings under the act to be at least $2.1 trillion over the
next 10 years relative to its baseline assumptions. In updating our own fiscal
projections, with certain modifications outlined below, we have relied on the
CBO's latest "Alternate Fiscal Scenario" of June 2011, updated to
include the CBO assumptions contained in its Aug. 1 letter to Congress. In
general, the CBO's "Alternate Fiscal Scenario" assumes a continuation
of recent Congressional action overriding existing law.
We view the act's
measures as a step toward fiscal consolidation. However, this is within the
framework of a legislative mechanism that leaves open the details of what is
finally agreed to until the end of 2011, and Congress and the Administration
could modify any agreement in the future. Even assuming that at least $2.1
trillion of the spending reductions the act envisages are implemented, we
maintain our view that the U.S. net general government debt burden (all levels
of government combined, excluding liquid financial assets) will likely continue
to grow. Under our revised base case fiscal scenario--which we consider to be
consistent with a 'AA+' long-term rating and a negative outlook--we now project
that net general government debt would rise from an estimated 74% of GDP by the
end of 2011 to 79% in 2015 and 85% by 2021. Even the projected 2015 ratio of
sovereign indebtedness is high in relation to those of peer credits and, as
noted, would continue to rise under the act's revised policy settings.
Compared with previous
projections, our revised base case scenario now assumes that the 2001 and 2003
tax cuts, due to expire by the end of 2012, remain in place. We have changed
our assumption on this because the majority of Republicans in Congress continue
to resist any measure that would raise revenues, a position we believe Congress
reinforced by passing the act. Key macroeconomic assumptions in the base case
scenario include trend real GDP growth of 3% and consumer price inflation near
2% annually over the decade.
Our revised upside
scenario--which, other things being equal, we view as consistent with the
outlook on the 'AA+' long-term rating being revised to stable--retains these
same macroeconomic assumptions. In addition, it incorporates $950 billion of
new revenues on the assumption that the 2001 and 2003 tax cuts for high earners
lapse from 2013 onwards, as the Administration is advocating. In this scenario,
we project that the net general government debt would rise from an estimated
74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.
Our revised downside
scenario--which, other things being equal, we view as being consistent with a
possible further downgrade to a 'AA' long-term rating--features less-favorable
macroeconomic assumptions, as outlined below and also assumes that the second
round of spending cuts (at least $1.2 trillion) that the act calls for does not
occur. This scenario also assumes somewhat higher nominal interest rates for
U.S. Treasuries. We still believe that the role of the U.S. dollar as the key
reserve currency confers a government funding advantage, one that could change
only slowly over time, and that Fed policy might lean toward continued loose
monetary policy at a time of fiscal tightening. Nonetheless, it is possible
that interest rates could rise if investors re-price relative risks. As a result,
our alternate scenario factors in a 50 basis point (bp)-75 bp rise in 10-year
bond yields relative to the base and upside cases from 2013 onwards. In this
scenario, we project the net public debt burden would rise from 74% of GDP in
2011 to 90% in 2015 and to 101% by 2021.
Our revised scenarios
also take into account the significant negative revisions to historical GDP
data that the Bureau of Economic Analysis announced on July 29. From our
perspective, the effect of these revisions underscores two related points when
evaluating the likely debt trajectory of the U.S. government. First, the
revisions show that the recent recession was deeper than previously assumed, so
the GDP this year is lower than previously thought in both nominal and real
terms. Consequently, the debt burden is slightly higher. Second, the revised
data highlight the sub-par path of the current economic recovery when compared
with rebounds following previous post-war recessions. We believe the sluggish
pace of the current economic recovery could be consistent with the experiences
of countries that have had financial crises in which the slow process of debt
deleveraging in the private sector leads to a persistent drag on demand. As a
result, our downside case scenario assumes relatively modest real trend GDP
growth of 2.5% and inflation of near 1.5% annually going forward.
When comparing the U.S.
to sovereigns with 'AAA' long-term ratings that we view as relevant
peers--Canada, France, Germany, and the U.K.--we also observe, based on our
base case scenarios for each, that the trajectory of the U.S.'s net public debt
is diverging from the others. Including the U.S., we estimate that these five
sovereigns will have net general government debt to GDP ratios this year
ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%.
By 2015, we project that their net public debt to GDP ratios will range between
30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at
79%. However, in contrast with the U.S., we project that the net public debt
burdens of these other sovereigns will begin to decline, either before or by
2015.
Standard & Poor's
transfer T&C assessment of the U.S. remains 'AAA'. Our T&C assessment
reflects our view of the likelihood of the sovereign restricting other public
and private issuers' access to foreign exchange needed to meet debt service.
Although in our view the credit standing of the U.S. government has
deteriorated modestly, we see little indication that official interference of this
kind is entering onto the policy agenda of either Congress or the
Administration. Consequently, we continue to view this risk as being highly
remote.
The outlook on the
long-term rating is negative. As our downside alternate fiscal scenario illustrates,
a higher public debt trajectory than we currently assume could lead us to lower
the long-term rating again. On the other hand, as our upside scenario
highlights, if the recommendations of the Congressional Joint Select Committee
on Deficit Reduction--independently or coupled with other initiatives, such as
the lapsing of the 2001 and 2003 tax cuts for high earners--lead to fiscal
consolidation measures beyond the minimum mandated, and we believe they are
likely to slow the deterioration of the government's debt dynamics, the
long-term rating could stabilize at 'AA+'.
On Monday, we
will issue separate releases concerning affected ratings in the funds,
government-related entities, financial institutions, insurance, public finance,
and structured finance sectors.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.81 |
|
|
1 |
Rs.82.00 |
|
Euro |
1 |
Rs.68.81 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SCs credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.