MIRA
INFORM REPORT
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Report Date : |
21.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
DAVID LEVY DIAMONDS |
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Registered Office : |
1 Jabotinsky Street, Diamond Exchange, Maccabi Building, Ramat Gan 52520 |
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Country : |
Israel |
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Date of Incorporation : |
1971 |
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Legal Form : |
Sole
Proprietorship |
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Line of Business : |
Processors, importers, traders and exporters of diamonds. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
DAVID LEVY DIAMONDS
1 Jabotinsky Street
Diamond Exchange,
Maccabi Building
RAMAT GAN 52520 ISRAEL
Telephone 972 3 575 02 16
Fax 972 3 575 12 49
HISTORY
A sole
proprietorship, established 1971.
Subject operates as License
Dealer No. 030283972.
OWNER AND GENERAL MANAGER
David Levy.
BUSINESS
Processors, importers, traders and exporters of diamonds.
99% of sales are for export.
Operating from an
owned office premises in Room No. 45, 6th floor, in 1 Jabotinsky
Street, Diamond Exchange, Maccabi Building, Ramat Gan.
Having 10 employees.
MEANS
Financial data not forthcoming.
ANNUAL SALES
2005 sales claimed to be US$ 12,000,000 (of which 99% for export).
2006 sales claimed to be US$ 15,000,000 (of which 99% for export).
BANKERS
Mizrahi Tefahot Bank
Ltd., Diamond Business Center Branch (No. 466), Ramat Gan, account No. 116880.
A check with the
Central Banks' database did not reveal anything detrimental on subject’s a/m
account.
CHARACTER AND
REPUTATION
Nothing unfavorable
learnt.
Subject’s owner, Mr.
Levy, refused to disclose financial details on his business other than sales
figures.
This is a long
established business, enjoying good reputation in the branch.
According to a
report from November 2006, the diamonds branch is on the verge of a significant
recuperation after the deep crisis it got into, the worst one for decades,
which affected the profitability of Israeli diamond businesses. World sales
towards Thanksgiving Day grew by 10% comparing to 2005. That already led to a
rise in rough diamonds.
According to the
Ministry of Industry and Trade, the local diamonds branch managed to stabilize
the total volume of export of cut diamonds during 2006, a year that witnessed
many local and global challenges, and end in the same level as 2005. In rough
diamonds a decrease was noted, due to marketing motives, and as high prices
made the trade in rough diamonds less attractive.
Total (net) export of
cut diamonds from Israel in 2006 reached US$ 6.610 billion, a mere decrease of
1.5% from 2005 (US$ 6.709 billion). Exports (net) of rough diamonds were US$
2.701 billion, a 23.2% decrease from 2005 (US$ 3.517 billion, which was a 20.6%
increase from 2004).
Import of rough
diamonds (net) also fell in 2006 by 11.4% (from 2005) to US$ 4.709 billion,
while import of cut diamonds (net) increased in 2006 by 3.3% reaching US$ 4.025
billion.
The USA is the main
market for Israel’s export of cut diamonds (over 50%). The secondary markets
are Hong Kong (around 20%), Belgium (around 10%), Switzerland and the UK.
Since the beginning
of 2007, import rough diamonds to Israel noted a 7.8% decrease comparing to the
parallel period in 2006, due to a shortage in world markets, following the
lowering in sales by DE BEERS and the tough winter in Africa that hurt mining.
Nevertheless, the officials in the branch reported 11.7% increase in import of
polished diamonds in January 2007.
In the first 2
months of 2007, export (net) of cut diamonds rose by 9.2% comparing to the
parallel period in 2006, summing up to US$ 1.349 billion. Export of rough
diamonds (net) also witnessed an increase.
SUMMARY
Good for trade
engagements.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)