medium · Corporate Credit Analysis cca-core
Riverbed Logistics reports $4,200M in revenue. However, a single customer, RetailCorp, accounts for $1,100M of those sales.
How does this impact the credit risk assessment of Riverbed?
- It is credit-positive because it ensures revenue visibility from a large partner.
- It creates a binding constraint on the rating due to high customer concentration.
- It only matters if Riverbed Logistics has high fixed costs.
- It is neutral as long as RetailCorp has an investment-grade rating.
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