Monday, Oct 10, 2005
MARC has affirmed the rating of Tesco Stores (Malaysia) Sdn Bhd’s (“TSM”) RM750 million guaranteed commercial paper programme at MARC-1(cg). The short term corporate debt rating of TSM reflects the credit strength of its ultimate holding company, Tesco PLC (“Tesco”), which irrevocably and unconditionally guaranteed the commercial paper programme.
TSM presently operates eight hypermarkets in Malaysia: three in Klang Valley i.e. Klang, Puchong and Mutiara Damansara, one store each in Shah Alam, Melaka, Sungai Petani, Penang and Ipoh.
TSM’s revenue increased in FY2004, following the opening of more hypermarkets and higher rental income from the mall and kiosk tenants. However, as TSM is still in its early years of operation, it continued to report pre tax losses in FY2004. TSM’s financial flexibility is deemed moderately strong, attributed to the strength of its shareholders, Tesco Holdings BV and SD Holdings Berhad, which are wholly-owned subsidiaries of Tesco and Sime Darby Berhad respectively.
TSM presently operates eight hypermarkets in Malaysia: three in Klang Valley i.e. Klang, Puchong and Mutiara Damansara, one store each in Shah Alam, Melaka, Sungai Petani, Penang and Ipoh.
TSM’s revenue increased in FY2004, following the opening of more hypermarkets and higher rental income from the mall and kiosk tenants. However, as TSM is still in its early years of operation, it continued to report pre tax losses in FY2004. TSM’s financial flexibility is deemed moderately strong, attributed to the strength of its shareholders, Tesco Holdings BV and SD Holdings Berhad, which are wholly-owned subsidiaries of Tesco and Sime Darby Berhad respectively.