Standard & Poor’s Ratings Services announced that they have raised its rating on Tupperware Brands(NYSE: TUP).
The rating, including its corporate credit rating went from BB to BB+ which basically means that financial security is adequate, but capacity to meet long-term policies might still be vulnerable. vulnerable. The added plus means that Tupperware is on the upside of the rating and that the outlook for the future performance of the company is good.
Tupperware has continued to improve its operating performance over the last two quarters and the company has continued to make an effort to reduce their debt, this led S&P to remove the issue level rating from Credit watch as it expects the company will continue on an upward path.
While S&P feels that Tupperware has made significant improvement, they still feel that it will be necessary to keep a close eye on the company. Tupperware has continued to steadily improve, however the direct sales industry continues to be highly competitive and at times volatile. The outlook for the company is good and will remain stable for the foreseeable future.
‘The ratings on Tupperware continue to reflect the risks of direct-sales distribution and the company’s participation in the highly competitive cosmetics industry,’ said Standard & Poor’s credit analyst Christopher Johnson. But, he said, ‘the company’s moderate financial policies, improving credit protection measures, its product and geographic diversity, along with its well-known brand name and premium product position in the mature molded-plastic storage category, offset these factors.’
Tupperware’s stock has actually had a pretty good run giving the economy and the performance isnt too bad. The stock is up about 20% over the past 52 weeks and continues to have some decent support as well.
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