Fitch affirms Tech Data, lowers view to stable

Fitch Ratings said it revised Tech Data Corp.'s (TECD) outlook to stable from positive and affirmed the company's BB+ issuer default rating and BB+ senior unsecured bank credit facility.

The stable outlook reflects Fitch's expectations that TECD's weaker-than-expected operating performance over the past several quarters, driven primarily by operating challenges in Europe, will continue through the near term despite anticipated costs savings from the company's current restructuring activities.

Fitch noted that the ratings continue to reflect the comparatively thin operating EBIT margins associated with the wholesale IT distribution industry, which Fitch said it believes will be challenged to increase above 1.5% over the longer term and the more mature growth characteristics of TECD's major geographic markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.