Mattel ratings, outlook currently unaffected by expanded product recall - S&P |
|
|
|
Published
:
Thu, 16 Aug 2007 05:35
|
MUMBAI (Thomson Financial) - Bulletin: Mattel Inc. Ratings, Outlook Unaffected As Yet By Expanded Product RecallsStandard & Poor's Ratings Services said the expanded product recall by Mattel Inc does not affect the ratings or outlook on the company at this time.The agency however added it continues to monitor this issue.Because of potential safety risks, Mattel has recently recalled 18.2 mln magnetic toys sold to consumers over thepast several years.The recall encompasses several brands -- including two accessory items of Barbie, the company's second-largest product, sales of which have been flat since 2006 because of increased competition.Mattel has also recalled 436,000 licensed die-cast vehicles related to the 'Cars' movie that were produced this year by a third-party subcontractor, because of excessive lead paint levels.The company is tightening controls throughout the production process at vendor facilities and is now testing every productionrun.'Because we are uncertain about the risks surrounding the recall, we are more likely to move the timing of an upgrade further out,' S&P said.'We could, however, revise the outlook to stable if negative publicity on the recalls stalls Mattel's recent progress in operating performance; the company announces further significant recalls; product liability issues surface; or if the company reacts to the pressure of recent news on its share price by boosting share repurchases in excess of its ongoing 250 mln usd share repurchase program, undermining key credit measures,' the agency added.TFN.newsdesk@thomson.comjro
|
|
|
|
|
|
Print this Story
Mattel's ratings, outlook unaffected by recall of Fisher-Price toys - S&P 