Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

High Yield Experts

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

Credit

We view Pan Brothers as "Very High Risk" on the LARA scale. The company is small relative to global peers, and operates in the challenging textile industry. Our assessment also reflects the risks associated with the: [1] moderately high leverage; [2] persistently negative operating cash flows since FY 2015, mainly owing to large working-capital outflows as Pan Brothers expands its business; [3] very weak liquidity with looming debt maturities; and [4] significant deterioration in access to capital. Our view also considers these strengths: [1] a track record of consistent earnings, built on a cost pass-through model; and [2] long-term customer relationships with global apparel brands, which provide solid short-term contractual revenue visibility. Our fundamental Credit Bias on Pan Brothers is "Negative". We foresee a high likelihood of an eventual debt restructuring, including a distressed exchange for the USD Notes. In the meantime, we believe there is a low to moderate likelihood of default. We view the group as "Moderate" on the LAGA scale, given the broad ownership base, experienced management team and minimal related-party transactions. Negatively, the shareholders appear to have outside business interests, which could affect their commitment to Pan Brothers.

  We view Pan Brothers as "Very High Risk" on the LARA scale. The company is small relative to global peers, and operates in the challenging textile industry. Our assessment also reflects the risks associated with the: [1] moderately high leverage; [2] persistently negative operating cash flows since FY 2015, mainly owing to large working-capital outflows as Pan Brothers expands its business; [3] very weak liquidity with looming debt maturities; and [4] significant deterioration in access to capital. Our view also considers these strengths: [1] a track record of consistent earnings, built on a cost pass-through model; and [2] long-term customer relationships with global apparel brands, which provide solid short-term contractual revenue visibility.   Our fundamental Credit Bias on Pan Brothers is "Negative". We foresee a high likelihood of an eventual debt restructuring, including a distressed exchange for the USD Notes. In the meantime, we believe there is a low to moderate likelihood of default.   We view the group as "Moderate" on the LAGA scale, given the broad ownership base, experienced management team and minimal related-party transactions. Negatively, the shareholders appear to have outside business interests, which could affect their commitment to Pan Brothers. 

Pan Brothers - Tear Sheet - Lucror Analytics