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Report Date : |
22.11.2012 |
IDENTIFICATION DETAILS
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Name : |
THE KROGER CO. |
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Registered Office : |
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Country : |
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Financials (as on) : |
11.08.2012 |
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Date of Incorporation : |
03.04.1902 |
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Legal Form : |
Public Company (NYSE = KR) |
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Line of Business : |
Manufactures and processes food for sale in its supermarkets |
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No. of Employees : |
339,000 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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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 |
United States - ECONOMIC OVERVIEW
The
|
Source
: CIA |
THE KROGER CO.
Note
:
Your order on: FRYS FOO STORES
This is a division of:
THE KROGER CO.
Address:
Telephone: 513-762-4000
Fax: 513-762-1575
Website: www.kroger.com
Corporate ID#: 14931
State:
Judicial form: Public
Company (NYSE = KR)
Date incorporated: April 3, 1902
Stock: 1,000,000,000 shares common at USD
1= par value
5,000,000 shares preferred at USD 100= par value
Name of manager: David B. DILLON J.D.
Business:
The Kroger Co., together with its
subsidiaries, operates as a retailer in the
It operates supermarkets in various formats.
The company’s combination food and drug stores (combo stores) that operate as
food stores consist of natural food and organic sections, pharmacies, general
merchandise, pet centers, and perishables, such as fresh seafood and organic
produce.
Its multi-department stores sell general
merchandise items comprising apparel, home fashion and furnishings,
electronics, automotive products, toys, and fine jewelry. The company’s
marketplace stores include full-service grocery and pharmacy departments, as
well as general merchandise area that include outdoor living products,
electronics, home goods, and toys. Its price impact warehouse stores offer
grocery, health, and beauty care items, as well as meat, dairy, baked goods,
and fresh produce items.
In addition, the company operates fuel
centers; and convenience stores that offer limited assortment of staple food
items and general merchandise, as well as sell gasoline.
As of January 28, 2012, it operated 2,435
supermarkets and multi-department stores, 1,090 of which had fuel centers, as
well as operated 791 convenience stores and 348 fine jewelry stores.
The company was founded in 1883 and is based
in
Last news:
On 11-18-2012, The Kroger Co. is closing its
EIN: 31-0345740
Staff: 339,000
Operations & branches:
At above address, we find a large warehouse
and office, owned.
As of January 28, 2012, it operated 2,435
supermarkets and multi-department stores, 1,090 of which had fuel centers, as
well as operated 791 convenience stores and 348 fine jewelry stores.
At the address given on your order,
Shareholders:
The Company is listed with the NYSE under
symbol KR.
83% of the stock is held by institutional
and mutual fund owners, including:
|
ALLIANCEBERNSTEIN, L.P. |
5.48% |
|
VANGUARD GROUP, INC. (THE) |
4.42% |
|
STATE STREET CORPORATION |
4.20% |
|
BLACKROCK INSTITUTIONAL TRUST COMPANY,
N.A. |
2.71% |
|
PRICE (T.ROWE) ASSOCIATES INC |
2.49% |
|
INVESCO LTD. |
2.40% |
|
FRANKLIN RESOURCES, INC |
2.40% |
Management:
David B. DILLON J.D. is the Chairman and CEO
Mr. David B. Dillon is the Chief Executive
Officer and Chairman of Kroger Co., since June 26, 2003 and since June 24,
2004, respectively.
He has more than 35 years of experience in
the consumer products business.
Mr. Dillon was the President and Chief
Operating Officer at Kroger Co. since in 1995, and the Executive Vice President
since September 13, 1990. He served in a variety of leadership roles at the
Dillon Companies Inc. since 1976 with its King Scoopers division. At Dillon, he
was an Executive Vice President since September 13, 1990, and President since
April 22, 1986. Mr. Dillon also served in various positions at Fry's Food
Stores.
He is an Independent Director of Convergys
Corporation since March 2000. Mr. Dillon has been Director of DIRECTV since
March 10, 2011. He also serves as a Director of Catalyst, Inc. and Bethesda,
Inc. Mr. Dillon is also a Member of Advisory Board of Great Range Capital. He
serves as a Trustee of University of Cincinnati Foundation, the Urban League of
Greater Cincinnati, and the
W. Rodney McMULLEN is the President and COO.
Mr. W. Rodney McMullen has been the
President and Chief Operating Officer of Kroger Co. since August 1, 2009. Mr.
McMullen served as an Executive Vice President of Strategy, Planning and
Finance of Kroger Co. since January 26, 2000. Mr. McMullen served as an
Executive Vice President of Kroger Co., since May 20, 1999. He served as Senior
Vice President of Kroger Co., since October 5, 1997 and Group Vice President
June 18, 1995. He served as Chief Financial Officer of Kroger Company from June
18, 1995 to 2000. Mr. McMullen served as Vice President of Control and
Financial Services of Kroger Co. since March 4, 1993, and Vice President of
Planning and Capital Management since December 31, 1989. He joined Kroger Co.
in 1978 as a part-time stock clerk. He served as Vice Chairman of The Kroger
He has been a Director of Cincinnati
Financial Corp., since 2001.
Mr. McMullen has been a Director of Kroger
Co. since 2003.
He holds a Master of Science degree in
accounting from the
J. Michael SCHLOTMAN is the CFO.
Subsidiaries &
Partnership:
There are numerous subsidiaries including FRED MEYER JEWELERS INC.
On attachment:
- 10K 2011
- 2nd 10Q 2012
For the 2nd quarter 2012, Kroger reported
total sales, including fuel, increased 3.9% to $21.7 billion in the second
quarter of fiscal 2012 compared with $20.9 billion for the same period last
year.
In the second quarter, which ended August
11, 2012, total sales, excluding fuel, increased 3.8% over the same period last
year.
Net earnings for the second quarter totaled
$279.1 million, or $0.51 per diluted share. Net earnings in the same period
last year were $280.8 million, or $0.46 per diluted share. Prior year net
earnings benefited from a 27.6 percent tax rate, compared to a tax rate of 34.5
percent in the second quarter this year.
Banks: Bank of
...
Legal filings & complaints:
There are several cases pending involving
the Company or its subsidiaries as plaintiff or defendant.
Secured debts summary (UCC): Numerous
Domestic credit history:
|
monthly
payment trends - recent activity |
|
National Credit Bureaus give a correct credit rating.
According to our credit analysts, during the
last 6 months, 94% of trade experience indicates a regular payment.
Payments of imports are currently made on
terms.
The Company is developing a strong business.
The banks and financial institutions confirmed a satisfying credit
history.
The Company is in good standing.
This means that all local and federal taxes were paid on due date.
The risk is low.
Our opinion:
A business connection may be conducted.
Standard
& Poor’s
|
|
|
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.
The
transfer and convertibility (T&C) assessment of the
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
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
The
political brinksmanship of recent months highlights what we see as
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
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
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
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
Standard & Poor's
transfer T&C assessment of the
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+'.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.20 |
|
|
1 |
Rs.87.79 |
|
Euro |
1 |
Rs.70.42 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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 SC’s 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.