Monday November 22, 12:55 pm Eastern Time

Company Press Release

SOURCE: Duff & Phelps Credit Rating Co.

DCR Assigns Initial Ratings to Hasbro, Inc.

CHICAGO, Nov. 22 /PRNewswire/ -- Duff & Phelps Credit Rating Co. (DCR) has assigned a rating of 'A' (Single-A) to Hasbro, Inc.'s (NYSE: HAS - news) notes and debentures, and a rating of 'D-1' (D-One) to the company's commercial paper. Approximately $400 million of long-term debt and $900 million of commercial paper are currently outstanding.

The Rating Outlook is stable.

Hasbro is the second largest toy manufacturer in the United States, with a strong line-up of owned and licensed brands and particular strength in games and boy's toys. Hasbro's solid market position and diverse portfolio have led to steady profitability and cash flow within the dynamic toy industry.

Hasbro's growth has been driven by a number of acquisitions in recent years. These acquisitions have included hot products such as Furby and Pokemon, and should help the company maintain its operating momentum following the recent of surge of Star Wars-related sales. The acquisitions are consistent with the company's strategy of evolving into an entertainment and game company, and away from a pure toy company. This strategy, to build its game and interactive businesses, should position Hasbro well in an environment in which children are losing interest in traditional toys at a younger age. Hasbro's recent acquisitions, which totaled approximately $1 billion over the past two years, together with royalty payments for the Star Wars rights and increasing share repurchases, have led to a significant increase in the company's financial leverage. With the completion of the Wizards of the Coast (Pokemon) acquisition following the close of the third quarter, management has indicated that leverage has now reached its peak and that debt levels should be reduced from cash flow in 2000.

Going forward, cash flow from operations should comfortably cover Hasbro's capital requirements and dividends. Free cash flow will be directed to acquisitions, share repurchases and some debt reduction. DCR believes that the company will balance its growth objectives with its desire to remain a 'A' (Single-A) credit.

Duff & Phelps Credit Rating Co. (DCR) is a leading global rating agency with 33 local market offices providing ratings and research on debt issues and insurance claims paying ability in more than 50 countries. For additional research on Hasbro, visit DCR's Web site at (Quick Search: Hasbro). DCR's research is also available on Bloomberg at DCR<GO> and First Call's BondCall Direct/Research Direct at, as well as through other third-party providers.

Preserved here on Mystic Fortress' server to avoid a bad link in the furture.
Article is quoted from Yahoo News and is not edited in any way.
Back to Furby News
Back to Furby Main
Back to Mystic Fortress