RCMECredit materiality pre-analysisIncludes illustrative values
Analytical aid.Not a rating or rating recommendation. Public data only.
V.F. Corp
CIK
0000103379
SIC
2320
Event
8-K Item 1.05 · cyber incident
Identified
2023-12-13
Filed
2023-12-18
Audit trailOpen memo

Disclosure pass · scored on the day of the 8-K

Credit materiality by dimension

Re-scored as a new audit trail row when the next 10-Q states the cost. The first score is never edited.

Boston ScientificAmgenV.F. Corp

Overall materiality

Moderate to elevated

The overall tier is the highest of Financial Risk, Business Risk and the Liquidity gate. Governance evidence can only raise it. There is no weighted average. scoring_rules.md 4.5scoring_rules.md 4.6

Low · 7 days ModerateBase · 21 days ElevatedHigh · 42 days Elevated

Financial risk

FFO to debt and debt to EBITDA, before and after the shock, against S&P published bands.

Low
FFO to debt(10.3%)Verifiedpre-event

Open-ended band: pins mark the band, not a position within it.

Debt to EBITDA11.24xVerifiedpre-event

Open-ended band: pins mark the band, not a position within it.

Pre-eventAfter shock, high caseWithin 10% of a band boundary

Corporate Methodology Table 17, standard volatility Corporate Methodology Table 17

Why

  • Low (7 days): FFO to debt (10.3%) to (10.4%), stays in the below 12% band. No weaker boundary (weakest band).
  • Low (7 days): Debt to EBITDA 11.24x to 11.35x, stays in the 5x and above band. No weaker boundary (weakest band).
  • Base (21 days): FFO to debt (10.3%) to (10.6%), stays in the below 12% band. No weaker boundary (weakest band).
  • Base (21 days): Debt to EBITDA 11.24x to 11.57x, stays in the 5x and above band. No weaker boundary (weakest band).
  • High (42 days): FFO to debt (10.3%) to (10.8%), stays in the below 12% band. No weaker boundary (weakest band).
  • High (42 days): Debt to EBITDA 11.24x to 11.92x, stays in the 5x and above band. No weaker boundary (weakest band).
Corporate Methodology Table 17Corporate Methodology para 118scoring_rules.md 4.2

Business risk

Operational status, share of earnings in the affected unit, outage length, data type.

Moderate to Elevated
ScenarioDriverTier
Lowpartial disruption, outage of 7 days.Moderate
Baseoutage of 21 days, at or above the 14-day threshold.Elevated
Highoutage of 42 days, at or above the 14-day threshold.Elevated
Affected unit share
1.0 Estimate upper bound: segment count not reported in XBRL; an analyst share replaces it
Data types
PII Derived
Third-party impact
Needs analyst input

Why

  • Low: partial disruption, outage of 7 days.
  • Base: outage of 21 days, at or above the 14-day threshold.
  • High: outage of 42 days, at or above the 14-day threshold.
scoring_rules.md 4.4

Liquidity gate

Sources over uses for 12 months after the event cost, with a 15% EBITDA stress.

High
Gate inputs (USD m). FFO after the event and the event cost are computed per scenario.
InputUSD mSource
Cash (source)499Verifiedfiling as of 2023-09-30 · excerpt
Undrawn committed facilities, beyond 12 months (source)1,200Verifiedfiling as of 2023-09-30 · excerpt
Contracted asset sales (source)0n/a
Working capital change, 12 months (source)(96)n/a
Debt maturing in 12 months (use)1,024Derivedfiling as of 2023-09-30 · excerpt
Capex (use)166Derivedfiling as of 2023-09-30 · excerpt
Contracted acquisitions (use)0n/a
Shareholder distributions (use)0n/a

Why

  • All scenarios: gate fail.
Liquidity Descriptors paras 21-41scoring_rules.md 4.3

Governance evidence

Flags that can only raise the overall tier, never lower it.

No flags in this pass

Why

  • Low: no flags, overall tier moderate.
  • Base: no flags, overall tier elevated.
  • High: no flags, overall tier elevated.
scoring_rules.md 4.5

Outage scenarios

lost EBITDA = EBITDA × affected share × disruption fraction × days / 365
MeasurePre-eventLow · 7 daysBase · 21 daysHigh · 42 days
Lost EBITDA (USD m)n/a6Derived17Derived34Derived
FFO to debt(10.3%)Verified(10.4%)Verified(10.6%)Verified(10.8%)Verified
Debt to EBITDA11.24xVerified11.35xVerified11.57xVerified11.92xVerified
Ratio band movedn/aNoNoNo
Business risk tiern/aModerateElevatedElevated
Overall tiern/aHighHighHigh

Financial context, FY2023 (USD m)

As-reported proxies. S&P adjustments not applied.

DerivedVerifiedNeeds analyst input
MetricUSD mProvenanceXBRL tags or formula
EBITDA590DerivedDerivedOperatingIncomeLoss + DepreciationAndAmortization
Debt6,630DerivedDerivedShortTermBorrowings + LongTermDebtCurrent + LongTermDebtNoncurrent
FFO(684)DerivedDerivedOperatingIncomeLoss + DepreciationAndAmortization + InterestPaidNet + IncomeTaxesPaidNet
CFO(656)VerifiedVerifiedNetCashProvidedByUsedInOperatingActivities
FOCFNeeds analyst inputDerivedNetCashProvidedByUsedInOperatingActivitiesmissing: capex
DCFNeeds analyst inputDerivedNetCashProvidedByUsedInOperatingActivities + PaymentsOfDividendsCommonStock + PaymentsForRepurchaseOfCommonStockmissing: capex
Cash interest160VerifiedVerifiedInterestPaidNet
Operating leases (shown separately)1,504VerifiedVerifiedOperatingLeaseLiability