Header & Footer Format (Old)

MIRA INFORM REPORT

Report Date :

11.01.2007

IDENTIFICATION DETAILS

Name :	CATERPILLAR S.A.R.L. - SINGAPORE BRANCH

Registered Office :	^{7 Tractor Road, Jurong Town, Singapore - 627968}

Country :	Singapore

Financials (as on) :	30.11.2005

Date of Incorporation :	^27/08/1999

Com. Reg. No.:	^{F 05744W}

Legal Form :	^{Foreign Company}

Line of Business :	Sale of Earthmoving, Construction and Materials Handling Machineries

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Subject Company

CATERPILLAR S.A.R.L. - SINGAPORE BRANCH

Line Of Business

SALE OF EARTHMOVING, CONSTRUCTION AND MATERIALS HANDLING MACHINERIES

Parent Company

Financial Elements

FY 2005

BRANCH

Sales : USD3,257,245,162

Networth : USD267,448,276

Paid-Up Capital : -

Net result : USD143,234,670

Net Margin(%) : 4.40

Return on Equity(%) : 53.56

Leverage Ratio : 1.74

COMPANY IDENTIFICATION

^{Subject Company :
CATERPILLAR S.A.R.L. – SINGAPORE} ^BRANCH

^{Former Name :
-}

^{Business Address :
7 TRACTOR ROAD}

^{JURONG TOWN}

^{Town :
SINGAPORE}

^{Postcode : 627968}

^{County :
-}

^{Country :
Singapore}

^{Telephone :
6662 8333}

^{Fax :
6662 8302/ 6662 8295}

^{ROC Number :
F 05744W}

^{Reg. Town :
-}

SUMMARY

^{All amounts in this report are in : USD unless otherwise
stated}

^{Legal Form :
Foreign Company}

^{Date Inc. :
27/08/1999}

^{Previous Legal Form :
-}

^{Summary year :
30/11/2005}

^{Sales :
3,257,245,162}

^{Net worth :
267,448,276}

^{Capital :
-}

^{Paid-Up Capital :
-}

^{Employees :
Nil}

^{Net result :
143,234,670}

^{Share value :
-}

^{Auditor :
NIL}

^{AUTHORISED CAPITAL
240,000.00 V/SHARE 0.00 SWISS FRANC}

REFERENCES

^{Litigation :
No}

^{Company status: TRADING}

^{Started :
27/08/1999}

PRINCIPAL(S)

No principals recorded in our Database

DIRECTOR(S)

^{STEVEN H GRAHAM 157405923
Director}

^{Appointed on:
20/12/2000}

^{Street: 10
CHEMIN DES VARLIOUDES}

^{1252 MEINIER}

^{Town: -}

^{Postcode:
-}

^{Country:
Switzerland}

^{CHRISTIANO V. SCHENA 303695T
Director}

^{Appointed on:
20/12/2000}

^{Street: LA
LUCHE DUCROT,}

^{ROUTE DE MESSERY}

^{74140 NERNIER}

^{Town: -}

^{Postcode:
-}

^{Country:
France}

^{EDWARD J. RAPP 701502426
Director}

^{Appointed on:
20/12/2000}

^{Street 17
MARC DORET, 1224 CHENE-BOUGERIES}

^{Town: -}

^{Postcode:
-}

^{Country:
Switzerland}

^{PETER BRUDERER 9464103
Director}

^{Appointed on: 20/12/2000}

^{Street: 62
ROUTE DE FLORISSANT}

^{1206 GENEVA}

^{Town: -}

^{Postcode:
-}

^{Country:
Switzerland}

^{VITO H. BAUMGARTNER 9778982
Director}

^{Appointed on:
06/07/1999}

^{Street: 14
CHEMIN DE LA MOLLIETTE}

^{LES MEVAUX}

^{1254 JUSSY}

^{Town: -}

^{Postcode:
-}

^{Country:
Switzerland}

^{GERARD R. VITTECOQ 97HP29634
Director}

^{Appointed on:
20/12/2000}

^{Street: 248
ROUTE DE CORTENAZ}

^{74380 CRANVES-SALES}

^{Town: -}

^{Postcode:
-}

^{Country:
France}

^{CHARLES B. GUSTAFSON Z7530546
Director}

^{Appointed on:
06/07/1999}

^{Street: 9A
CH. DES HULINS, 1247 ANIERES}

^{Town: -}

^{Postcode:
-}

^{Country:
Switzerland}

^{CHRISTOPHER CLARK SPEARS G5740140R
Agent}

^{Appointed on:
18/04/2005}

^{Street: 25
CLAYMORE ROAD}

^#08-02

^{THE CLAYMORE}

^{Town: SINGAPORE}

^{Postcode:
229543}

^{Country:
Singapore}

^{FOO TOCK NGAN S1368900H Agent}

^{Appointed on:
18/04/2005}

^{Street: 160
YUNG PING ROAD}

^#09-41

^{Town: SINGAPORE}

^{Postcode:
610160}

^{Country:
Singapore}

FORMER DIRECTOR(S)

^{TAI MUI LENG MONICA S6844974Z}

^{LO YIM WAH S2637879F}

ACTIVITY(IES)

^{MACHINERY Code:13260}

^{MATERIAL HANDLING EQUIPMENT Code:13495}

^{BASED ON ACRA'S RECORD AS AT 05/01/2007}

^{1) WHOLESALE OF INDUSTRIAL, AGRICULTURAL,
CONSTRUCTION AND RELATED MACHINERY AND EQUIPMENT}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{BANK OF AMERICA}

SHAREHOLDERS(S)

No Shareholders In Our Database

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

Liquidity: SUFFICIENT

Payments: REGULAR

Trend: UPWARD

^{Financial Situation: AVERAGE}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

^{All amounts in this report are in: USD unless
otherwise stated}

^{Audit Qualification: UNQUALIFIED
(CLEAN) UNQUALIFIED (CLEAN) "SEVERE" OR ADVERSE}

^{Balance Sheet Date: 30/11/2005 30/11/2004
30/11/2003}

^{Number of weeks: 52 52 52}

^{Consolidation Code: BRANCH
BRANCH BRANCH}

^{--- ASSETS}

^{Intangible Fixed Assets: 40,088,030 40,088,030
43,171,722}

^{Tangible Fixed Assets: 35,015,407 34,619,307
35,222,492}

^{Total Fixed Assets}^{: 75,103,437 74,707,337
78,394,214}

^{Inventories: 401,825,544 386,897,373
250,474,689}

^{Receivables: 157,417,274 175,582,804
146,704,552}

^{Cash,Banks,Securities: 3,105,523 4,468,985
6,950,451}

^{Other current assets: 25,299,314 164,997
1,618,378}

^{Total Current Assets}^{: 587,647,655 567,114,159
405,748,070}

^{TOTAL ASSETS: 662,751,092
641,821,496
484,142,284}

^{---
LIABILITIES}

^{Reserves: 267,448,276 252,695,655
326,410,753}

^{Total Equity: 267,448,276
252,695,655
326,410,753}

^{L/T deferred taxes: 700,000 700,000
700,000}

^{Total L/T Liabilities}^{: 700,000 700,000
700,000}

^{Trade Creditors: 128,586,115 167,755,313 59,775,058}

^{Prepay. & Def. charges: 55,937,419 31,464,806
26,049,093}

^{Short term liabilities: - - 6,205}

^{Advanced payments: 6,195,925 4,165,772 3,725,764}

^{Provisions: 17,418,027 16,801,454
14,419,724}

^{Other Short term Liab.: 186,465,330 168,238,496
53,055,687}

^{Total short term Liab}^{.: 394,602,816 388,425,841
157,031,531}

^{TOTAL
LIABILITIES: 395,302,816 389,125,841 157,731,531}

PROFIT & LOSS ACCOUNT

^{Net Sales 3,257,245,162
2,538,205,435 1,672,022,340}

^{Purchases,Sces & Other Goods:
2,899,452,377 2,244,083,758 1,458,200,508}

^{Gross Profit: 357,792,785 294,121,677
213,821,832}

^{Result of ordinary operations 162,697,798 116,020,506
96,900,957}

^{NET RESULT BEFORE TAX: 158,489,912 116,015,457 97,747,247}

^{Tax: 15,255,242 13,942,719
9,540,524}

^{Net income/loss year: 143,234,670 102,072,738 88,206,723}

^{Interest Paid: 4,207,886 5,049 215,522}

^{Depreciation: 2,500,365 5,427,390
5,652,324}

^{Financial Income: 583,287 419,773 1,061,812}

RATIOS

^{30/11/2005 30/11/2004 30/11/2003}

^{Net result / Turnover(%): 0.04 0.04 0.05}

^{Stock / Turnover(%): 0.12 0.15 0.15}

^{Net Margin(%): 4.40 4.02 5.28}

^{Return on Equity(%): 53.56 40.39 27.02}

^{Return on Assets(%): 21.61 15.90 18.22}

^{Net Working capital: 193044839.00 178688318.00 248716539.00}

^{Cash Ratio: 0.01 0.01 0.04}

^{Quick Ratio: 0.41 0.46
0.98}

^{Current ratio: 1.49 1.46 2.58}

^{Receivables Turnover: 17.40 24.90 31.59}

^{Leverage Ratio: 1.74 1.83 0.56}

^{Net
Margin: (100*Net income loss year)/Net sales}

^{Return
on Equity: (100*Net income loss year)/Total equity}

^{Return
on Assets: (100*Net income loss year)/Total fixed assets}

^{Net
Working capital: (Total current assets-Total short term liabilities)}

^{Cash
Ratio: Cash Bank securities/Total short term liabilities}

^{Quick
Ratio: (Cash Bank securities+Receivables)/Total Short term liabilities}

^{Current
ratio: Total current assets/Total short term liabilities}

^{Inventory
Turnover: (360*Inventories)/Net sales}

^{Receivables
Turnover: (Receivable*360)/Net sales}

^{Leverage
Ratio: Total liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{THE BRANCH IS A SEGMENT OF CATERPILLAR S.A.R.L.
INCORPORATED IN} ^{SWITZERLAND AND IS NOT A SEPARATELY
INCORPORATED LEGAL ENTITY. THE} ^{ACCOMPANYING STATEMENTS HAVE BEEN
PREPARED FROM THE OF THE} ^{BRANCH AND REFLECT ONLY TRANSACTIONS
RECORDED LOCALLY.}

^{THE FINANCIAL CONDITION OF THE BRANCH WAS SEEN TO
BE FAIR IN VIEW OF} ^{THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH HEAD
OFFICE ACCOUNT} ^{IMPROVED BY 5.84% FROM USD252,695,655
IN 2004 TO USD267,448,276 IN} ^2005.

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY
OTHER SHORT TERM} ^{LIABILITIES WHICH MADE UP 47.25%
(2004: 43.31%) OF THE TOTAL CURRENT} ^{LIABILITIES AND AMOUNTED TO
USD186,465,330 (2004: USD168,238,496).} ^{THE BREAKDOWN IS AS FOLLOWS:}

^{-AMOUNTS DUE TO RELATED COMPANIES - 2005: - (2004:
USD7,968,981)}

^{-AMOUNTS DUE TO ULTIMATE HOLDING CORPORATION -
2005: -} ^{(2004: USD3,677,755)}

^{-CORE DEPOSITS LIABILITIES - 2005: USD65,755,969
(2004: USD37,819,189)}

^{-LOANS FROM COMPANIES - 2005: USD120,709,361 (2004:
USD118,772,571)}

^{TRADE CREDITORS FELL BY 23.35% TO USD128,586,115} ^{(2004:
USD167,755,313), AND CONSIST OF THE FOLLOWING:}

^{-THIRD PARTIES - 2005: USD50,649,757 (2004:
USD63,037,918)}

^{-AMOUNTS DUE TO RELATED COMPANIES - 2005:
USD77,936,358} ^{(2004: USD104,717,395)}

^{LONG TERM LIABILITIES, WHICH CONSIST OF DEFERRED
INCOME TAX} ^{LIABILITIES, REMAINED AT USD700,000 DURING
THE FINANCIAL YEAR.}

^{IN ALL, LEVERAGE RATIO FELL FROM 1.83 TIMES TO 1.74
TIMES AS A RESULT} ^{OF A MORE THAN PROPORTIONATE RISE IN
SUBJECT'S HEAD OFFICE ACCOUNT AS} ^{COMPARED TO THE RISE IN ITS TOTAL
LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS
PASSABLE AS SEEN FROM} ^{THE RISE IN NET WORKING CAPITAL BY
8.03% TO USD193,044,839} ^{(2004: USD178,688,318).}

^{CURRENT RATIO ROSE TO 1.49 TIMES, UP FROM 1.46
TIMES BUT QUICK RATIO} ^{DECREASED TO 0.41 TIMES FROM 0.46
TIMES IN 2004.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 28.33% FROM
USD2,538,205,435 IN 2004 TO} ^{USD3,257,245,162 AND NET PROFIT ROSE
BY 40.33% TO USD143,234,670}

^{(2004: USD102,072,738).}

^{HENCE, NET MARGIN ROSE TO 4.40% (2004: 4.02%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF
REVENUE AND EARNINGS} ^{CAN BE MAINTAINED AND PAYMENT BY TRADE
DEBTORS ARE FORTHCOMING. IN} ^{ADDITION, ITS INTEREST COVERAGE WAS
HEALTHY AS SHOWN BY ITS INTEREST} ^{COVERAGE RATIO OF 38.66 TIMES
(2004: 22978.91 TIMES).}

BACKGROUND/OPERATION

^{THE SUBJECT WAS INCORPORATED IN SWITZERLAND, AND IS
REGISTERED AS A} ^{FOREIGN BRANCH IN SINGAPORE ON
27/08/1999. IT IS TRADING UNDER ITS} ^{PRESENT NAME STYLE AS
"CATERPILLAR S.A.R.L. - SINGAPORE BRANCH".}

^{AS AT 05/01/2007, SUBJECT HAS AN AUTHORISED CAPITAL
OF 240,000} ^{SWISS FRANC.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING &
CORPORATE REGULATORY} ^{AUTHORITY (ACRA) TO BE PRINCIPALLY
ENGAGED IN THE BUSINESS OF:}

^{1) WHOLESALE OF INDUSTRIAL, AGRICULTURAL,
CONSTRUCTION AND RELATED} ^{MACHINERY AND EQUIPMENT}

^{2) MANUFACTURE & REPAIR OF ENGINES &
TURBINES EXCEPT AIRCRAFT,} ^{VEHICLE & CYCLE}

^ENGINES

^{DURING THE FINANCIAL YEAR(S) UNDER REVIEW, THE
PRINCIPAL ACTIVITY OF} ^{THE BRANCH CONSISTS OF THE SALE OF
EARTHMOVING, CONSTRUCTION AND} ^{MATERIALS HANDLING MACHINERIES,
ENGINES AND RELATED EQUIPMENT AND} ^{SPARE PARTS, ALL OF WHICH ARE
PURCHASED FROM RELATED COMPANIES.}

^{FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION
WAS GATHERED:}

^ACTIVITIES:

^{* EARTHMOVING, CONSTRUCTION AND MATERIAL HANDLING
EQUIPMENT, AND} ^{DIESEL, GAS AND TURBINE ENGINES
MANUFACTURE}

^{PRODUCTS OR SERVICES:}

^{* MOTOR GRADERS}

^{* WHEEL TRACTORS}

^{* CYLINDER BLOCK CASTING, CRANKSHAFT, CONNECTING
ROD ASSEMBLIES,} ^{CYLINDER HEAD}

^{CASTING,
CAMSHAFT, MAIN BEARING BOLTS, ETC}

^{IMPORT COUNTRIES:}

^{* UNITED STATES, ETC}

^{EXPORT COUNTRIES:}

^{* MIDDLE EAST, AFRICA, AUSTRALIA, ETC}

^{TERMS OF PAYMENT:}

^{* TERMS SALES
: 30, 45 DAYS TERMS, ETC}

^{* TERMS OF EXPORT: 30, 45 DAYS TERMS, ETC}

^{* TERMS OF IMPORT: 30, 45 DAYS TERMS, ETC}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE AS
TELE-INTERVIEW WAS} ^{NOT GRANTED ON 10/01/2007.}

^{THE BRANCH'S IMMEDIATE AND ULTIMATE HOLDING COMPANY
IS CATERPILLAR} ^{INCORPORATED, A COMPANY INCORPORATED
IN UNITED STATES OF AMERICA.}

^{THE BRANCH DOES NOT HAVE ANY EMPLOYEES ON ITS
PAYROLL AS OPERATIONS} ^{HAVE BEEN OUTSOURCED TO A RELATED
COMPANY. THE RELATED COMPANY} ^{INVOICES THE BRANCH FOR THE
REIMBURSEMENT OF EXPENSES AND A} ^{MANAGEMENT FEE.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{7 TRACTOR ROAD}

^{JURONG TOWN}

^{SINGAPORE 627968}

^{DATE OF CHANGE OF ADDRESS: -}

^{- RENTED PREMISE}

^{- OWNED BY: CATERPILLAR OVERSEAS S.A.}

^{OTHER OPERATING ADDRESS:}

^{14 TRACTOR ROAD}

^{JURONG TOWN}

^{SINGAPORE 627973}

^{- RENTED PREMISE}

^{- OWNED BY: CATERPILLAR OVERSEAS S.A.}

^E-MAIL:

^{yeong_kristie@cat.com}

^WEBSITE:

^{http://www.caterpillar.com}

^{http://www.cat.com}

MANAGEMENT

^{THE DIRECTORS/AGENTS AT THE TIME OF THIS REPORT
ARE:}

^{(1) STEVEN H. GRAHAM, AN AMERICAN}

^{- BASED
IN SWITZERLAND}

^{(2) CHRISTIANO V. SCHENA, AN ITALIAN}

^{- BASED
IN FRANCE}

^{(3) EDWARD J. RAPP, AN AMERICAN}

^{- BASED
IN SWITZERLAND}

^{(4) PETER BRUDERER, A SWISS}

^{- BASED
IN SWITZERLAND}

^{(5) VITO H. BAUGARTNER, A SWISS}

^{- BASED
IN SWITZERLAND}

^{(6) GERARD R. VITTECOQ, A FRENCH}

^{- BASED
IN FRANCE}

^{(7) CHARLES B. GUSTAFSON, AN AMERICAN}

^{- BASED
IN SWITZERLAND}

^{(8) CHRISTOPHER CLARK SPEARS, AN AMERICAN (AGENT)}

^{- BASED
IN SINGAPORE}

^{(9) FOO TOCK NGAN, A SINGAPOREAN (AGENT)}

^{- HOLDS
NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.}

Singapore’s Country Rating 2006

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION APPEARS TO BE VERY STABLE.

ECONOMIC GROWTH IS BECOMING MORE MODERATE AS INVESTMENT HAS BEEN FLAT DUE TO INCREASING OIL PRICES AND LESS BUOYANT DEMAND FOR ELECTRONIC PRODUCTS.

ECONOMIC PERFORMANCE HAS REMAINED STRONG, UNDERPINNED BY PHARMACEUTICALS AND SERVICES. EXPORTS HAS BENEFITED FROM THE STEADINESS OF DEMAND FROM ITS MAIN TRADING PARTNERS, MALAYSIA, THE UNITED STATES, CHINA AND HONG KONG. OTHER THAN ITS BALANCED PUBLIC SECTOR ACCOUNTS, LIMITED FOREIGN DEBT AND COMFORTABLE FOREIGN CURRENCY RESERVES HAVE CONTRIBUTED TO SINGAPORE’S STRONG FINANCIAL CONDITION.

AS THE ELECTRONICS SECTOR FACES COMPETITION FROM THE ASIAN ECONOMIES, SINGAPORE HAS BEEN PURSUING DIVERSIFICATION STRATEGY THAT HAS BEEN CONSOLIDATING ITS POSITION. PHARMACEUTICALS ALREADY REPRESENT 10% OF EXPORTS IN COMPARATIVE TO ITS INSIGNIFICANT CONTRIBUTION IN YEAR 1995. ELECTRONICS SECTOR SECTOR’S SHARE HAS DECLINED FROM 80% TO 60% DURING THE SAME PERIOD. THERE IS HIGH RELIANCE ON DEVELOPMENT OF PETROCHEMICAL PRODUCTS, HIGH VALUE-ADDED SERVICES AND BIOTECHNOLOGIES.

ASSETS

ONE OF THE MOST OPEN ECONOMIES IN THE WORLD WITH EXPORTS PLAYING A MAJOR ROLE IN ITS PERFORMANCE.

ONE OF ASIA’S MOST ADVANCED COUNTRIES IN QUALITY COMPETITIVENESS TERMS.

WORKFORCE’S EDUCATION AND SKILL LEVEL IS VERY HIGH.

A MAJOR EXPORT OF CAPITAL IN ASIA, PARTICULARLY THE STATE-OWNED HOLDING COMPANY, TEMASEK.

THE BUSINESS ENVIRONMENT HAS BEEN VERY FAVOURABLE.

GREAT POLITICAL STABILITY.

WEAKNESSES

ECONOMY REMAINED OVERSPECIALISED IN THE ELECTRONICS SECTOR.

MUST ACCELERATE DIVERSIFICATION IN SERVICES TO MAINTAIN ITS LEAD OVER OTHER ASIAN ECONOMIES

REFORMS ARE STILL NEEDED TO FOSTER INNOVATION AND EDUCATION-SYSTEM MODERNIZATION.

AGING POPULATION COULD ULTIMATELY AFFECT ECONOMIC PERFORMANCE.

WHOLESALE AND RETAIL TRADE

^{PAST
PERFORMANCE}

^{WITH THE GROWTH IN NON-OIL RE-EXPORTS AND THE RISE
IN RETAIL SALES, THE} ^{WHOLESALE AND RETAIL TRADE SECTOR GREW
BY A ROBUST 15% IN 1Q2006, UP FROM THE} ^{12% GAIN IN 4Q2005.}

^{WHOLESALE
TRADE}

^{DOMESTIC
WHOLESALE TRADE INDEX}

^{FOLLOWING SEVEN QUARTERS OF DOUBLE-DIGIT GROWTH,
THE OVERALL DOMESTIC WHOLESALE} ^{TRADE INDEX MODERATED TO 7.5% IN
1Q2006. EXCLUDING PETROLEUM, THE INDEX ROSE BY} ^{14.2% OVER THE SAME
PERIOD LAST YEAR.}

^{AT CONSTANT PRICES, THE OVERALL INDEX DECLINED BY
4.4% IN 1Q2006 OVER 1Q2005,} ^{MAINLY DUE TO LOWER ACTIVITY IN
CHEMICAL AND PETROLEUM SECTORS. EXCLUDING} ^{PETROLEUM, IT WAS 7.9%
HIGHER THAN A YEAR AGO.}

^{ON A QUARTER-ON-QUARTER BASIS, THE OVERALL INDEX
POSTED A DECLINE OF 16.5%} ^{COMPARED TO 4Q2005. EXCLUDING
PETROLEUM, THE INDEX WERE LOWER BY 8.9%.}

^{FOREIGN
WHOLESALE TRADE INDEX}

^{AS COMPARED TO 1Q2005, THE OVERALL FOREIGN
WHOLESALE TRADE IN 1Q2006 ROSE BY} ^{15.4%.
EXCLUDING PETROLUEM, THE INDEX EXPANDED BY 11.5%.}

^{AT CONSTANT PRICES, THE OVERALL INDEX ROSE
MARGINALLY BY 0.9% IN 1Q2006 OVER A} ^{YEAR
AGO. EXCLUDING PETROLEUM, IT WAS UP BY 7.6%.}

^{ON A QUARTER-ON-QUARTER BASIS, THE OVERALL INDEX
POSTED A DECLINE OF 9.4%} ^{FOLLOWING GROWTH FOR THREE CONSECUTIVE
QUARTERS. EXCLUDING PETROLEUM, THE INDEX} ^{WERE LOWER BY 8.6%.}

^{THE MAJOR SECTORS MOSTLY POSTED LOWER FOREIGN SALES
WITH THE EXCEPTION OF} ^{TELECOMMUNICATIONS & COMPUTERS
SECTOR IN 1Q2006. THE HOUSEHOLD EQUIPMENT &} ^{FURNITURE, FOOD,
BEVERAGES & TOBACCO SECTOR ALL REPORTED DECLINE IN TURNOVER OF} ^{MORE
THAN 17% IN THE FIRST QUARTER OF 2006 OVER 4Q2005.}

^RETAIL
TRADE

^{RETAIL SALES CHALKED UP 8.0% GROWTH IN 1Q2006,
FELLING MARGINALLY FROM THE 8.2%} ^{GROWTH IN 4Q2005. SALES OF MOTOR
VEHICLES ROSE BY 10% IN 1Q2006, HIGHER THAN THE} ^{8.5% GAIN IN THE LAST
QUARTER. EXCLUDING MOTOR VEHICLES, RETAIL SALES MODERATED} ^{TO 5.2%
GROWTH, SLOWER THAN THE 7.8% RISE IN 4Q2005.}

^{ALL THE MAJOR SEGMENTS RECORDED GROWTH IN 1Q2006
OVER 1Q2005, WITH GROWTH} ^{RANGING FROM 1.6% TO 18%. THE SEGMENTS
WERE TELECOMMUNICATIONS AND COMPUTERS,} ^{FOOD AND BEVERAGES, WEARING
APPAREL AND FOOTWEAR, OPTICAL GOODS AND BOOKS,} ^{PROVISION AND SUNDRY
SHOPS, DEPARTMENT STORES, SUPERMARKETS, MEDICAL GOODS AND} ^{TOILETRIES,
RECREATIONAL GOODS, FURNITURE AND HOUSEHOLD EQUIPMENT, WATCHES AND} ^{JEWELLERY,
AND PETROL SERVICE STATIONS.}

^{A
ROSY OUTLOOK FOR RETAILERS}

^{RETAIL SALES IN SINGAPORE ROSE IN JUNE FOR THE 16TH
STRAIGHT MONTH AS AN} ^{IMPROVING JOB MARKET AND A RISE IN
TOURIST ARRIVALS INCREASED CONSUMER SPENDING.}

^{THE RETAIL SALES INDEX GREW BY 5.1% FROM A YEAR
EARLIER AFTER EXPANDING BY 13.1%} ^{IN MAY. EXCLUDING MOTOR VEHICLES,
RETAIL SALES GREW BY 7.8%.}

^AHEAD

^{WHOLESALERS PREDICTS POSITIVE BUSINESS CONDITIONS
FOR THE PERIOD ENDING DECEMBER} ^{2006. THOSE DEALING IN FURNITURE &
FURNISHINGS, COSMETICS & TOILETRIES,} ^{JEWELLERY & WATCHES,
HOUSEHOLD ELECTRICAL APPLIANCES & EQUIPMENT, ELECTRONIC} ^{COMPONENTS,
SCIENITIFIC & PRECISION EQUIPMENT, ARE AMONG THOSE WHO ARE} ^{OPTIMISTIC
ABOUT THE BUSINESS OUTLOOK AHEAD.}

^{RETAILERS ALSO FORECAST BETTER BUSINESS SENTIMENTS
FOR THE COMING MONTHS ENDING} ^{DECEMBER 2006, WITH A NET BALANCE OF
22%, ESPECIALLY DEPARTMENT STORES AND} ^{RETAILERS OF WEARING APPAREL
AND FURNITURE & FURNISHINGS EXPECTING A POSITIVE} ^{BUSINESS
OUTLOOK FROM THE YEAR-END FESTIVE SHOPPING.}

^{EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY,
SINGAPORE}

^{SINGAPORE DEPARTMENT OF
STATISTICS}

^TODAY

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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