Fitch Report: U.S. Retail & Consumer Products Liquidity Generally Adequate

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has released its U.S. Retail and Consumer Products liquidity report. Liquidity is of particular importance today for U.S. retail and consumer products companies given the expected prolonged weak sales environment as consumer's incomes, wealth and capacity to borrow erodes.

This report is an in-depth analysis of the liquidity of the retail and consumer products sectors, evaluating the relative liquidity positions of 41 companies across the retail and consumer products sectors with the analysis considering internal sources of funds including cash holdings and cash generated from operations as stronger than obtaining external sources of liquidity which could be at risk. Critical components of internal cash flow generation and liquidity for retail and consumer products companies will be sales levels balanced with managing gross margins via promotions or pricing, operating costs, and working capital.

Overall, the companies in Fitch's retail and consumer products coverage are considered to have adequate liquidity with manageable upcoming debt maturities. Of the 41 companies reviewed, 26 are considered to have strong liquidity, seven are moderate and eight are weak, meaning they will have to access external sources to meet financing needs over the next 24 months, which could be challenging.

Please visit Fitch's web site, www.fitchratings.com, for the full report 'Liquidity Focus: U.S. Retail and Consumer Products'.

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