The largest wholesale grocery distributor in the U.S. based on revenues in a fragmented industry. A fairly low-cost operator. As a wholesale distributor, razor-thin margins. Significant customer concentration. The rating on privately owned C&S Wholesale Grocers Inc. and 75%-owned subsidiary C&S Group Enterprises LLC reflect Standard&Poor's Ratings Services' expectations that the Keene, N.H.-based company's financial risk profile will remain "aggressive," characterized by high debt leverage, thin margins, and moderate cash flow protection measures. We estimate that revenues should remain positive in fiscal 2012 because of higher unit volume and modest price increases. However, we estimate that margins will likely be relatively flat. We view C&S Wholesale Grocers' business risk profile as "weak," even though the company is one
