MIRA
INFORM REPORT
|
Report Date : |
14th March, 2007 |
IDENTIFICATION
DETAILS
|
Name : |
OUTOKUMPU STAINLESS OY |
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|
Registered Office : |
Outokumpu Stainless Oy Tornion tehtaat 95400 Tornio,
Tornion Tehtaat, 95400 Tornio |
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Country : |
Finland |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
21.11.1990 |
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Legal Form : |
Joint Stock Company |
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Line of Business : |
Manufacture of basic iron and steel and of Ferro-alloys |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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|
Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
Company Name & Address
Outokumpu
Stainless Oy
Outokumpu Stainless Oy Tornion
tehtaat
95400 Tornio
Tornion Tehtaat, 95400 Tornio
Telephone: +358 16 4521
Telefax: +358 16 452620
Trade register number
500880
Registered
21.11.1990
Business ID
08233159
Business started
01.01.1991
Turnover
In
2005, the turnover amounted to 2.274.471 thousand EUR, the length of the accounting
period was 12 months, and the period ended on 31.12.2005.
Number of employees
In
2005, the number of employees amounted to 2.280.
Line of business
The
company´s investigated line of business on 18.09.2004 is: manufacture of basic
iron and steel and of ferro-alloys (27100).
Basics
|
Company
form |
Joint-stock
company |
|
Type
of ownership |
Private
Finnish |
|
Share
capital |
Paid
share capital: 78.120.000 EUR |
|
Activity |
In 2005,
the turnover amounted to 2.274.471 thousand EUR, the length of the accounting
period was 12 months, and the period ended on 31.12.2005. In 2005, the number of employees
amounted to 2.280. The company´s investigated line of business
on 18.09.2004 is: manufacture of basic iron and steel and of ferro-alloys
(27100). The company is engaged in export and
import. The company works in premises of its
own. The company has been in the
Prepayment register since 01.03.1995. Validity to be checked on 29.02.2008. The company has been VAT liable for
the transfer of rights to use immovable property since 01.08.1994. The company has been VAT liable for
business activity since 01.06.1994. The company has been in the Employer
Register since 01.01.1991. According to an account of
26.06.2001, the company´s banker/financier is Nordea Bank Finland Plc. |
|
Other
names |
Old
name: 11.01.2004 AvestaPolarit Stainless Oy |
Payments
The company has no registered payment defaults. There are both positive remarks and a negative remark concerning the company´s payments.
Persons in charge
Managing director
Pihko Antti Esko Yrjänä, from 11.11.2005 on
140259-055M, Tornio
Participation in 4 companies on the basis of the identity number, the companies
have no payment defaults.
Chairman
Erkkilä Pekka Tuomas, from 06.09.2001 on
271158-067D, Espoo
Participation in one company on the basis of the identity number, the company
has no payment defaults.
Ordinary member
Iisakka Mauri Olavi, from 08.07.2003 on
210757-045B, Tornio
No participation in companies on the basis of the identity number.
Ordinary member
Järvinen Jani Kristian, from 23.06.2005 on
070271-037M, Kemi
No participation in companies on the basis of the identity number.
Ordinary member
Kemppainen Jorma Heikki Olavi, from 23.06.2005 on
100843-0354, Espoo
Participation in 2 companies on the basis of the identity number, the companies
have no payment defaults.
Ordinary member
Saariaho Mika Petteri, from 14.11.2006 on
230373-045J, Espoo
No participation in companies on the basis of the identity number.
Ordinary member
Tuunainen Jorma Juhani, from 23.06.2005 on
140549-061N, Kuivaniemi
No participation in companies on the basis of the identity number.
Deputy member
Aikio Maria Hannele, from 23.06.2005 on
070166-106S, Tornio
No participation in companies on the basis of the identity number.
Deputy member
Hoikka Jarmo Armas, from 23.06.2005 on
110871-117M, Kemi
No participation in companies on the basis of the identity number.
Deputy member
Kurtti Matti, from 08.07.2003 on
271251-013N, Tornio
No participation in companies on the basis of the identity number.
Deputy member
Suhonen Arto Juhani, from 23.06.2005 on
080863-187W, Se-95395 Nikkala
No participation in companies on the basis of the identity number.
Deputy member
Taivaloja Reino, from 08.07.2003 on
090448-589D, Pudasjärvi
No participation in companies on the basis of the identity number.
Deputy member
Tuunainen Raija Helena, from 26.05.2004 on
260149-096A, Tornio
No participation in companies on the basis of the identity number.
Authorised signatures
According to the statutes, the chairman of the Board and the managing director sign for the firm separately.
The procuration holders sign for the firm two jointly.
Business mortgages
The company has no registered business mortgages.
Group structure
The company is parent company in the group Outokumpu Stainless -konserni.
Financial statement analysis
|
The
financial statement analysis is based on the financial statement data of
Outokumpu Stainless Oy in the accounting period as at 31.12.2005. The
analysis also utilizes the data of the accounting periods 2001-2004. |
|
|
Industry
comparison |
The
comparison includes 17 companies in the industry class 27100 Manufacture of
basic iron and steel and of ferro-alloys. The risk of bankruptcy in the line is
2.6 %, and the risk of payment defaults 2.6 %. The risk of payment defaults
is clearly lower than average. |
|
Volume |
The
turnover of Outokumpu Stainless Oy is very large (2,274 mill EUR) in relation
to all active companies. This may reduce the company´s liability to risk, as
the company has a considerable amount of resources related with large size.
In its line, the company is clearly larger than average (2.0 mill EUR). The
change in turnover from the previous period is 5.3 %. In the latest accounting
period, the company employed 2,280 persons on average. The turnover per
person is 998 tEUR, which is very good compared with the line (median 253
tEUR). Thus, the productivity of labour is on a very high level. The
long-term development of the ratio has been very positive. |
|
Profitability |
The
operating result in % (-2.1 %) is poor, compared with the line (9.2 %), which
refers to a dangerously low contribution margin. The contribution margin
plummeted completely in the previous accounting period. The central ratio for
profitability, return on investment, is poor (-2.7 %). This is clearly lower
than the average in the line (median 20.0 %). The profitability decreased
substantially in the previous accounting period. The development of the
company´s profitability has been very risky in every way. If, instead of the return on
investment, the return on assets is calculated, taking also into account
interest-free loans, the return ratio is -2.4 %. The return is poor, in
relation to the line of business (16.3%). |
|
Liquidity |
The
liquidity is passable, measured by quick ratio (0.4), which is considerably
lower than the average in the line (median 1.5). The company´s financial buffer
is very small. The sales receivable turnover of the company is average (37
days) compared with the line (38 days). |
|
Solvency |
The
solvency of Outokumpu Stainless Oy is satisfactory, measured by equity ratio
(30.2 %). The company´s equity ratio is clearly lower than the median in the
line (62.7%). The development of solvency has weakened in the long term. The
company´s net gearing is 2.0, which can be considered satisfactory. The
relative indebtedness is 60.2%, which is satisfactory compared with the
median in the line (38.8%). |
|
Summary
and remarks |
Because of its solvency, the company
has the qualifications to also bring the profitability to at least a
satisfactory level in order to secure the preconditions for activities in the
long term. The verbal interpretation of the
financial statements analysis has been produced programmatically from
unadjusted financial statements. |
Audit of the accounts
Auditor in the accounting period as at 01.01.2005 - 31.12.2005:
KHT Marjomaa Markku, Pricewaterhouse Coopers Oy
The auditor´s report is available, but it has not been assessed at
Asiakastieto.
Number of enquiries
54 enquiries have been made on the company during the past 6 months, of which 14 during the past 30 days.
Suomen Asiakastieto Oy does not guarantee that the information in the report is correct or complete, nor does it assume responsibility for damages possibly caused by the use of this report.
Company´s payments
|
Period |
Code |
From due date |
Delayed, total |
|
Number of observations |
|
|
|||||
|
02/2007 |
ML |
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|
|
1 |
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|||||
|
01/2007 |
ML |
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|
1 |
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|
|||||
|
12/2006 |
ML |
|
|
|
1 |
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|
|||||
|
11/2006 |
ML |
|
|
|
1 |
|
|
|||||
|
10/2006 |
ML |
|
|
|
1 |
|
|
|||||
|
|
M3 |
31-60 |
<1,9 |
t EUR |
1 |
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|
|||||
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09/2006 |
ML |
|
|
|
1 |
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|
|||||
|
08/2006 |
ML |
|
|
|
1 |
|
|
|||||
|
07/2006 |
ML |
|
|
|
1 |
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|
|||||
|
06/2006 |
ML |
|
|
|
1 |
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|
|||||
|
05/2006 |
ML |
|
|
|
1 |
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|
|||||
|
04/2006 |
ML |
|
|
|
1 |
|
|
|||||
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|
|||||
Summary of the profit and loss
account (t EUR)
|
|
31.12.2005
12
months |
31.12.2004
12
months |
31.12.2003
12
months |
|
Turnover |
2.274.471,0 |
2.159.898,0 |
1.469.230,3 |
|
Expenses from acquisitions and manufacture |
-2.207.148,0 |
-1.929.640,0 |
-1.366.446,2 |
|
Gross profit |
67.323,0 |
230.258,0 |
102.784,1 |
|
Expenses from sales and marketing |
-23.138,0 |
-20.949,0 |
-18.720,6 |
|
Expenses from administration |
-29.980,0 |
-28.607,0 |
-27.144,9 |
|
Other operating income |
0,0 |
2.406,0 |
|
|
Operating expenses |
-61.939,0 |
-4.919,0 |
-2.748,9 |
|
Operating result |
-47.734,0 |
178.189,0 |
54.169,7 |
|
Financing income |
|
|
823,7 |
|
Financing expenses |
-37.261,0 |
-32.509,0 |
-32.890,9 |
|
Result before extraordinary items |
-84.995,0 |
145.680,0 |
22.102,4 |
|
Extraordinary items |
0,0 |
-56.975,0 |
-7.120,0 |
|
Appropriations |
-41.295,0 |
-88.404,0 |
-13.968,2 |
|
Direct taxes |
-3,0 |
-24,0 |
-48,0 |
|
|
|
|
|
|
Result for the financial year |
-126.292,0 |
278,0 |
966,2 |
Summary of the profit and loss
account (t EUR)
|
|
31.12.2002
12
months |
31.12.2001
12
months |
31.12.2000
12
months |
|
Turnover |
975.717,2 |
908.422,3 |
1.120.453,3 |
|
Expenses from acquisitions and manufacture |
-832.312,3 |
-801.076,3 |
-869.328,7 |
|
Gross profit |
143.404,8 |
107.346,0 |
251.124,8 |
|
Expenses from sales and marketing |
-16.828,7 |
-16.285,4 |
-14.295,6 |
|
Expenses from administration |
-26.242,5 |
-23.232,7 |
-19.323,3 |
|
Other operating income |
|
|
230,1 |
|
Operating expenses |
-5.051,0 |
-5.543,2 |
-4.966,9 |
|
Operating result |
95.282,6 |
62.284,8 |
212.769,0 |
|
Financing income |
596,0 |
1.249,4 |
2.686,0 |
|
Financing expenses |
-17.420,6 |
-4.148,9 |
-4.777,5 |
|
Result before extraordinary items |
78.458,0 |
59.385,2 |
210.677,2 |
|
Extraordinary items |
-35.507,0 |
-80.146,0 |
-228.366,1 |
|
Appropriations |
-43.951,7 |
20.800,3 |
17.800,2 |
|
Direct taxes |
-50,8 |
-50,6 |
-15,1 |
|
|
|
|
|
|
Result for the financial year |
-1.051,6 |
-11,0 |
96,4 |
Profit and loss account (t EUR)
|
|
31.12.2005
12
months |
||
|
PROFIT AND LOSS ACCOUNT |
|
||
|
TURNOVER |
2.274.471,0 |
||
|
Cost of goods sold |
-2.207.148,0 |
||
|
GROSS MARGIN |
67.323,0 |
||
|
Sales and marketing expenses |
-23.138,0 |
||
|
Administrative expenses |
-29.980,0 |
||
|
Other operating expenses |
-61.939,0 |
||
|
OPERATING RESULT |
-47.734,0 |
||
|
Financial income and expenses
|
|
||
|
Interest and other financial expenses |
-37.261,0 |
||
|
RESULT BEFORE EXTRAORDINARY ITEMS
|
-84.995,0 |
||
|
RESULT BEFORE CLOSING ENTRIES AND TAXES
|
-84.995,0 |
||
|
Closing entries |
|
||
|
Change in depreciation difference |
-41.295,0 |
||
|
Income taxes |
-3,0 |
||
|
|
|
||
|
RESULT FOR THE FISCAL PERIOD
|
-126.292,0 |
||
|
|
|
||
|
|
|
|
|
Summary of the balance sheet (t
EUR)
|
|
31.12.2005
12 months
|
31.12.2004
12
months |
31.12.2003
12
months |
|
Intangible assets |
16.010,0 |
15.338,0 |
19.755,7 |
|
Tangible assets |
1.191.182,0 |
1.237.170,0 |
1.159.803,3 |
|
Investments |
10.600,0 |
10.828,0 |
4.034,8 |
|
Stocks |
351.781,0 |
396.879,0 |
271.062,1 |
|
Current financial assets |
393.549,0 |
388.836,0 |
265.534,3 |
|
Subscribed capital |
78.120,0 |
78.120,0 |
78.120,0 |
|
Reserves |
174.897,0 |
174.897,0 |
174.897,3 |
|
Retained earnings |
648,0 |
370,0 |
-596,5 |
|
Result for the financial year |
-126.292,0 |
278,0 |
966,2 |
|
Subordinated loans |
|
|
|
|
Accumulated appropriations |
465.560,0 |
424.264,0 |
335.860,8 |
|
Provisions |
2.100,0 |
|
|
|
Long-term debts |
457.395,0 |
520.215,0 |
552.793,6 |
|
Current liabilities |
910.693,0 |
850.908,0 |
578.148,7 |
|
|
|
|
|
|
Balance sheet total |
1.963.121,0 |
2.049.052,0 |
1.720.190,2 |
Summary of the balance sheet (t
EUR)
|
|
31.12.2002
12
months |
31.12.2001
12
months |
31.12.2000
12
months |
|
Intangible assets |
16.244,7 |
6.267,7 |
3.506,9 |
|
Tangible assets |
1.085.027,3 |
695.992,2 |
485.050,1 |
|
Investments |
4.965,0 |
5.036,9 |
2.203,6 |
|
Stocks |
207.340,9 |
133.412,9 |
174.237,5 |
|
Current financial assets |
179.579,9 |
158.087,8 |
214.509,7 |
|
Subscribed capital |
78.120,0 |
78.120,0 |
70.638,9 |
|
Reserves |
174.897,3 |
174.897,3 |
182.378,8 |
|
Retained earnings |
455,0 |
466,0 |
369,7 |
|
Result for the financial year |
-1.051,6 |
-11,0 |
96,4 |
|
Subordinated loans |
|
|
|
|
Accumulated appropriations |
321.892,6 |
277.940,9 |
298.741,3 |
|
Provisions |
|
|
|
|
Long-term debts |
344.687,3 |
22.154,8 |
36.673,4 |
|
Current liabilities |
574.157,1 |
445.229,6 |
290.609,4 |
|
|
|
|
|
|
Balance sheet total |
1.493.157,8 |
998.797,6 |
879.507,8 |
Balance sheet (t EUR)
|
|
31.12.2005
12
months |
|
BALANCE SHEET |
|
|
ASSETS |
|
|
FIXED AND OTHER NON-CURRENT ASSETS
|
|
|
Intangible assets |
|
|
Intangible rights |
12.003,0 |
|
Goodwill |
3.799,0 |
|
Other capitalised expenses |
208,0 |
|
Tangible assets |
|
|
Land and water areas |
4.000,0 |
|
Buildings and constructions |
395.079,0 |
|
Machinery and equipment |
735.886,0 |
|
Other tangible assets |
42.278,0 |
|
Advances paid and fixed assets under construction |
13.939,0 |
|
Investments |
|
|
Shares/Similar rights of ownership in group compa |
10.272,0 |
|
Other receivables |
328,0 |
|
CURRENT ASSETS |
|
|
Inventories and work-in-progress
|
|
|
Materials and supplies |
106.198,0 |
|
Finished goods |
245.583,0 |
|
Receivables |
|
|
Long term receivables |
|
|
Short term receivables |
|
|
Trade receivables |
227.522,0 |
|
Receivables from group companies |
70.000,0 |
|
Loan receivables |
69.634,0 |
|
Prepaid expenses and accrued income |
26.156,0 |
|
Financial assets |
|
|
Other securities |
231,0 |
|
Cash in hand and at banks
|
6,0 |
|
|
|
|
BALANCE SHEET TOTAL |
1.963.121,0 |
|
|
|
|
SHAREHOLDERS´ EQUITY AND LIABILITIES
|
|
|
SHAREHOLDERS´ EQUITY |
|
|
Share capital, subscribed capital of a co-operati |
78.120,0 |
|
Share premium |
174.897,0 |
|
Other reserves |
|
|
Retained earnings (losses) |
648,0 |
|
Result for the fiscal period |
-126.292,0 |
|
ACCUMULATED CLOSING ENTRIES
|
|
|
Depreciation difference |
465.560,0 |
|
COMPULSORY PROVISIONS |
|
|
Other compulsory provisions |
2.100,0 |
|
LIABILITIES |
|
|
Long term liabilities |
|
|
Loans from pension institutions |
11.250,0 |
|
Other loans and liabilities |
446.145,0 |
|
Short term liabilities |
|
|
Loans from pension institutions |
2.250,0 |
|
Trade payables |
173.270,0 |
|
Other loans and liabilities |
702.380,0 |
|
Deferred income and accrued expenses |
32.793,0 |
|
|
|
|
BALANCE SHEET TOTAL |
1.963.121,0 |
Information about the audit
Accounting period 31.12.2005
The auditor´s report is available, but it has not been assessed at
Asiakastieto.
Auditors
Name
Marjomaa Markku KHT Pricewaterhouse Coopers Oy
Company´s ratios
|
|
|
|
|
|
|
|
Accounting
period |
31.12.2005 |
31.12.2004 |
31.12.2003 |
31.12.2002 |
31.12.2001 |
|
Volume |
|
|
|
|
|
|
Turnover
EUR 1000 |
2.274.471,0 |
2.159.898,0 |
1.469.230,3 |
975.717,2 |
908.422,3 |
|
Change
in turnover in % |
5,3 |
47,0 |
50,6 |
7,4 |
-18,9 |
|
Turnover/person
EUR 1000 |
997,6 |
973,8 |
685,3 |
485,2 |
500,2 |
|
Profitability |
|
|
|
|
|
|
Operating
margin (EBITDA) in % |
|
|
|
|
|
|
Operating
result (EBIT) in % |
-2,1 |
8,2 |
3,7 |
9,8 |
6,9 |
|
Return
on investment in % |
-2,7 |
10,9 |
4,2 |
10,6 |
8,6 |
|
Return
on total assets in % |
-2,4 |
9,5 |
3,4 |
7,7 |
6,8 |
|
Liquidity |
|
|
|
|
|
|
Quick
ratio |
0,4 |
0,5 |
0,5 |
0,3 |
0,4 |
|
Current
ratio |
0,8 |
0,9 |
0,9 |
0,7 |
0,7 |
|
Solvency |
|
|
|
|
|
|
Equity
ratio in % |
30,2 |
33,1 |
34,3 |
38,6 |
53,2 |
|
Net
gearing |
2,0 |
1,7 |
1,6 |
1,3 |
0,6 |
|
Relative
indebtedness in % |
60,2 |
63,5 |
76,9 |
93,7 |
51,4 |
|
Working
capital |
|
|
|
|
|
|
Working
capital ratio in % |
17,9 |
21,9 |
19,7 |
20,1 |
16,4 |
|
Inventories/turnover
in % |
15,5 |
18,4 |
18,4 |
21,3 |
14,7 |
|
Sales
receivable turnover in days |
37 |
50 |
43 |
48 |
47 |
|
Accounts
payable turnover in days |
|
|
|
|
|
Ratios of the line of business
Line of business 27100 Manufacture of basic
iron and steel and of ferro-alloys (39 kpl)
|
|
|
|
|
|
|
|
Year |
2005
|
2004
|
2003
|
2002
|
2001
|
|
Companies in the line |
17 |
17 |
14 |
12 |
16 |
|
Volume |
|
|
|
|
|
|
Turnover EUR 1000 |
2.022,8
|
2.057,8
|
1.668,4
|
2.483,6
|
1.765,5
|
|
Change in turnover in % |
4,1 |
30,6
|
5,3 |
1,4 |
-5,7
|
|
Turnover/person EUR 1000 |
252,8
|
163,6
|
159,0
|
151,0
|
219,0
|
|
Profitability |
|
|
|
|
|
|
Operating margin (EBITDA) in % |
13,8
|
12,1
|
8,3 |
9,3 |
6,5 |
|
Operating result (EBIT) in % |
9,2 |
8,2 |
3,2 |
5,3 |
3,5 |
|
Return on investment in % |
20,0
|
16,7
|
5,6 |
4,5 |
4,8 |
|
Return on total assets in % |
16,3
|
12,6
|
3,8 |
4,0 |
4,5 |
|
Liquidity |
|
|
|
|
|
|
Quick ratio |
1,5 |
0,8 |
1,1 |
0,5 |
1,1 |
|
Current ratio |
2,0 |
1,2 |
1,6 |
1,1 |
1,5 |
|
Solvency |
|
|
|
|
|
|
Equity ratio in % |
62,7
|
34,2
|
38,0
|
43,1
|
48,5
|
|
Relative indebtedness in % |
38,8
|
52,0
|
53,2
|
50,5
|
31,4
|
|
Working capital |
|
|
|
|
|
|
Working capital ratio in % |
14,2
|
10,6
|
12,6
|
17,4
|
16,0
|
|
Inventories/turnover in % |
12,1
|
12,7
|
10,0
|
12,1
|
12,7
|
|
Sales receivable turnover in days |
38 |
35 |
36 |
38 |
45 |
|
Accounts payable turnover in days |
26 |
47 |
50 |
39 |
32 |
|
|
|
|
|
||
|
|
Line
of business |
All
companies |
|||
|
Payment default risk |
2,6%
|
9,2% |
|||
|
Bankruptcy risk |
2,6% |
1,0% |
|||
|
|
|||||
Text concerning the authorised
signatures
According
to the statutes, the chairman of the Board and the managing director sign for
the firm separately.
Authorised signatures
|
Name |
|
Nationality |
Resigned |
|
Kauppi Mauri Juhani, Tornio |
Holder of procuration |
FI |
|
|
090354 |
The procuration holders sign for the firm two
jointly. |
||
|
Koivuniemi Seppo Kalervo, Tornio |
Holder of procuration |
FI |
|
|
171146 |
The procuration holders sign for the firm two
jointly. |
||
|
Korteniemi Mikko Tapani, Tornio |
Holder of procuration |
FI |
|
|
030559 |
The procuration holders sign for the firm two
jointly. |
||
|
Kovalainen Jorma Kalevi, Tornio |
Holder of procuration |
FI |
|
|
110246 |
The procuration holders sign for the firm two
jointly. |
||
|
Leinonen Risto Juhani, Tornio |
Holder of procuration |
FI |
|
|
270554 |
The procuration holders sign for the firm two
jointly. |
||
|
Liisanantti Risto Heikki, Tornio |
Holder of procuration |
FI |
|
|
230250 |
The procuration holders sign for the firm two
jointly. |
||
|
Mattila Timo Matias, Tornio |
Holder of procuration |
FI |
|
|
130558 |
The procuration holders sign for the firm two
jointly. |
||
|
Möksä Anna-Liisa, Tornio |
Holder of procuration |
FI |
|
|
290557 |
The procuration holders sign for the firm two
jointly. |
||
|
Rättyä Eero Arvi, Tornio |
Holder of procuration |
FI |
|
|
111248 |
The procuration holders sign for the firm two
jointly. |
||
|
Suurnäkki Matti Antero, Espoo |
Holder of procuration |
FI |
|
|
271164 |
The procuration holders sign for the firm two
jointly. |
||
|
Yli-Niemi Jussi Heimo, Tornio |
Holder of procuration |
FI |
Right expired on 04.03.2007 |
|
080562 |
The procuration holders sign for the firm two
jointly. |
||
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 |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)