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The group has a higher leveraged capital structure than China

Canada Goose sale S cuts China Fishery to ‘B Canada Goose sale

canada goose clearance sale The Pacific Andes group weaker credit uk canada goose profile than China Fishery Canada Goose online also constrains the rating on the subsidiary. The group has a higher leveraged capital structure than China Fishery One of China Fishery parent companies, Pacific Andes International Holdings canada goose uk black friday Ltd. (PAIH; not rated), has an financial risk profile, as our canada goose factory sale criteria define the term. canada goose clearance Its financial performance canada goose uk outlet is weak, with a ratio of total debt to EBITDA of 4.5x for the first half of fiscal 2012 (5.1x in fiscal 2011). In our view, a negative impact cheap Canada Goose of the FAS inquiry into China Fishery North canada goose black friday sale Pacific Ocean operations will also hit the Pacific Andes group. PAIH financial risk Canada Goose Jackets profile would deteriorate further if revenue from the fishery and fish supply division materially declines. This division accounted for 32.1% of the company total revenue in the first half of 2012. canada goose clearance sale

canada goose black friday sale In our opinion, China Fishery is also exposed to high uncertainty and regulatory canada goose uk shop risk for its Peru operations. The company revenue fell 19.7% to US$152.6 million for the third quarter of fiscal 2012 from US$190 million for the same period last year, due mainly cheap canada goose uk to a one canada goose coats month delay in the commencement of the first fishing season in Peru following a canada goose store government canada goose directive. The Peruvian government decision on Canada Goose Outlet China Fishery permitted total allowable catch could also affect the company revenues. canada goose black friday sale

canada goose clearance The rating on China Fishery also reflects the company exposure to the volatile commercial fishing industry, its limited but improving geographic and business diversity, and its aggressive financial policy. Our assessment is primarily based on the buy canada goose jacket company aggressive financial policy and low minimum cash balance. Although China Fishery completed a US$300 million senior unsecured bond issuance in July 2012, the company intends to use the majority of the proceeds to pay for a fourth supply agreement, which is currently under negotiation. Surplus cash for working canada goose coats on sale capital Canada Goose sale needs remains low. canada goose clearance

Canada Goose Outlet China Fishery has also been generating Canada Goose Online negative free operating cash flow canada goose clearance sale since 2008. Including committed capital expenditure, the buy canada goose jacket cheap company sources of liquidity would be tight for servicing its short term debt of about US$177.2 million as of June 30, 2012. About one third of this debt relates to amortization of a four year US$425 million term loan (about US$30.9 million per quarter starting May 2012 for 11 consecutive quarters). The company canadian goose jacket sources of liquidity, including cash, funds from operation (FFO; about US$200 million), and Canada Goose Parka committed undrawn banking facilities, is likely to cover its uses of liquidity by about 1.16x. As of June 30, 2012, China Fishery has about US$44.1 million in unrestricted cash and about US$90 million in undrawn committed banking facilities. Canada Goose Outlet

buy canada goose jacket uses include committed capital expenditure (including a US$250 million payment for the fourth supply agreement), working capital needs, debt repayments, and dividend payouts. buy canada goose jacket

canada goose The company will be in compliance with its financial covenants even if EBITDA declines by 10%. canada goose

buy canada goose jacket cheap The uk canada goose outlet group has a good standing in the credit markets, particularly with banks such as Hongkong and Shanghai Banking Corp. We expect the company leverage (as measured by a ratio of debt to EBITDA) to increase to above 3.0x at the end of fiscal 2012 from 2.1x in fiscal 2011 after the bond issuance. We anticipate that the FFO to debt ratio will decrease to 26.8% from 37.9%. buy canada goose jacket cheap

Canada Goose online We Canada Goose Coats On Sale could lower the rating Canada Goose Outlet if: Canada Goose online

canada goose store The outcome from the FAS inquiry is worse than we expect, such that China Fishery loses material fish supply in Russian waters; and canada goose store

canadian goose jacket The financial performance of China Fishery direct and indirect parent companies, Pacific Andes Resources Development Ltd. (not rated) and PAIH, weaken materially. This could happen if the total debt to EBITDA ratio of the ultimate parent, PAIH, exceeds 6.0x. canadian goose jacket

cheap Canada Goose The heightening regulatory risk of China Fishery business limits the rating upside in the next few years. Beyond that, we could raise the rating if China Fishery further diversifies its geographic coverage and improves its product mix while maintaining a robust financial performance cheap Canada Goose.

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