Wal-Mart helps apparel suppliers secure financing

LOS ANGELES/SAN FRANCISCO (Reuters) - Wal-Mart Stores Inc (WMT.N) is helping "well over 1,000" of its apparel suppliers secure financing based on the strength of its own credit rating, a spokesman said on Friday.

The program was designed to address concerns in the factoring environment, company spokesman John Simley said.

He said a supplier can go to a bank with a purchase order from Wal-Mart, and the bank could arrange for necessary financing based on Wal-Mart's strong financial position. The retailer has a AA credit rating.

"We're not underwriting, and we're not extending our (credit) rating," he said.

Factoring often involves short-term financing for customers that provide merchandise to retailers.

The move follows the November 1 bankruptcy of CIT Group Inc (CITGQ.PK).

(Reporting by Lisa Baertlein and Nicole Maestri, editing by Leslie Gevirtz)