KUALA LUMPUR (April 20): Malaysian Rating Corp Bhd (MARC) has assigned a preliminary rating of AA- to 7-Eleven Malaysia Holdings Bhd s proposed RM600 million medium-term notes (MTN) programme with a stable outlook to reflect the group s strong and established market position in the Malaysian convenience store segment.
In a note today, MARC analysts said 7-Eleven Malaysia Holdings had proposed the MTN to refinance existing borrowings and as the convenience-store operator with about 2,400 stores nationwide is expected to continue its rapid pace of expansion with a target of opening 100 to 150 new outlets annually. The assigned rating mainly reflects 7-Eleven Malaysia Holdings strong and established market position in the convenience store segment, gained from a long operating track record with a wide store network that has supported stable earnings generation.
20 Apr 2021 / 21:37 H.
PETALING JAYA: Malaysian Rating Corp Bhd (MARC) has assigned a preliminary rating of ‘AA-’ to 7-Eleven Malaysia Holdings Bhd’s proposed RM600 million medium-term notes (MTN) programme with a stable outlook.
“The assigned rating mainly reflects 7-Eleven’s strong and established market position in the convenience store segment, gained from a long operating track record with a wide store network that has supported stable earnings generation.
Moderating the rating are the prevailing competition within the convenience store segment, particularly in the urban areas, and high operating cost inherent in the convenience store business model that has weighed on operating margins,” MARC said.