Abstract
Standard & Poor’s carried out Delphi ratings among few other rating agencies, which had rated the company too. Delphi is involved in varied services and has certain parameters, which have positive impact on its performance. Nevertheless, there are few factors, which do act as speed breakers in its faster progress. The article below identifies the various shades of the company.
Involved in a diverse range of activities, Delphi is located in Troy and sales recorded were $22.3 billion as of 2007. Delphi operates in as many as 34 nations and had labor force comprising 169,500 workers (2007). The company's main functional areas include:
Supply of transportation systems
Mobile electronics
Entertainment systems inside cars
Electronic or electrical architecture
The company is also engaged in:
Energy applications
Consumer electronics
Communications
Medical applications
Lately, the company was rated by rating agencies like Standard & Poor 's, Fitch Ratings to assess the financial health of the company. Delphi ratings indicate that the company:
Has the back up of a distribution force, which is firm
Has sufficient subsidiary capital
Has manifested operating results, which have been very strong.
Financial coverage is healthy
Financial leverage is also healthy
Delphi ratings imply that despite being equipped with these strengths, there are certain drawbacks of the company. The company is vulnerable to pressure from its competitors. To add to this the company has a tendency to indulge in “concentrated investment risks”.
As per Delphi ratings by Standard & Poor 's, the rating agency is of the opinion that the earnings of the company can be stabilized provided the company is capable of managing the risks it undertakes and also shed expenditure. Delphi would also be benefited if it fine tunes the pricing discipline, makes wise investment decision and adopts strategies, which help in risk management.
Delphi ratings by S&P were as follows (a glimpse of the rating):
Preferred Stock Rating (A) was BB+
Senior Unsecured Rating was BBB
Counter party Credit Rating was BBB and Stable.