MIRA
INFORM REPORT
|
Report Date : |
19.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
PHILIPPINE INTERNATIONAL TRADING CORPORATION |
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|
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Registered Office : |
3rd To 5th, 10th Floors, Ndc Building, 116 Tordesillas Street
Salcedo Village, Makati City |
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Country : |
Philippines |
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Date of Incorporation : |
July 21, 1973 |
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Com. Reg. No.: |
PD 252 |
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Legal Form : |
Government Owned Company |
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Line of Business : |
Engaged in export, import and marketing of a wide range of
commodities, industrial products and consumer goods |
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 |
|
Maximum Credit Limit : |
USD 100,000 |
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Status : |
Satisfactory |
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|
|
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Payment Behaviour : |
Regular |
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Litigation : |
Exists |
Company Details
|
Company Name: |
PHILIPPINE INTERNATIONAL TRADING CORPORATION |
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Trading Name: |
PITC |
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Supplied Name: |
PHILIPPINE INTERNATIONAL TRADING CORPORATION FOR BTHE A/C
OF PITC PHARMA INC. |
|
Trading Address: |
3RD TO 5TH, 10TH FLOORS, NDC BUILDING, 116 TORDESILLAS
STREET SALCEDO VILLAGE, MAKATI CITY, PHILIPPINES |
|
Supplied Address: |
NDC BLDG., 116, TORDESILLAS ST. SALCEDE, VILL MAKATI,
PHILIPPINES |
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Telephone Number: |
+63-2-892-2054; 892-2021; 818-98-01/817-10-21 |
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Fax Number: |
+63-2-892-20-54/892-20-21 |
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Website: |
Credit Summary
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Credit Rating: |
Maximum credit USD 100,000 |
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Credit Opinion: |
Business connections are permissible. |
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Risk Analysis: |
Average creditworthiness |
Payment Summary
No information.
Company Identification Details
|
Company Name: |
PHILIPPINE INTERNATIONAL TRADING CORPORATION |
|
Registered Number: |
PD 252 |
|
Legal Form: |
Government owned company |
|
Date Incorporated: |
July 21, 1973 |
|
Authorized Capital Stock: |
PHP 300,000,000 (USD 6,919,590) (As of 2007.11, 1 PHP =
0.0230653 USD) |
|
Subscribed Capital Stock: |
PHP 300,000,000 (USD 6,919,590) |
|
Paid-up Capital: |
PHP 300,000,000 (USD 6,919,590) |
|
Par Value Per Share: |
PHP 100 |
|
Listed at Stock Exchange: |
No |
|
Principal Activities: |
Trader/ marketing |
|
Sales Turnover: |
PHP 275,622,413 (USD 6,357,314) (2006) |
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Net Worth: |
PHP 219,623,420 (USD 5,065,680) (2006.12.31) |
|
PSIC: |
G51395 |
|
Staff: |
About 110 Employees (including 94 regular and 16 contractual office personnel,
warehousemen, and workers) |
Note: Amounts in Philippine Peso unless otherwise specified.
History
Subject the sole full-service government-owned international
trading company, under the Office of the President. It is engaged in the export
and import of commodities, industrial products, and consumer goods. It is an active
participant in the implementation of government-to-government trading
transactions, in alternative marketing and financial mechanisms like
counter-trade, and in bulk importation programs which seek to stabilize prices
and supply in the domestic market. To support the market development efforts of
its clients worldwide, the company also provides access to competitively-priced
trade services and facilities.
Created on July 21, 1973 by virtue of PD No. 252 as amended
by PD 1071 on January 25, 1977. It was reorganized on December 29, 1981 and
February 18, 1983 by authority of Executive Orders Nos. 7566 and 877,
respectively. On November 25, 1985 under PD 1067, subject became a 99.5% owned
subsidiary of the National Development Company. The remaining 5% represent the
share of the Development Bank of the Philippines representing 1.5M in subject’s
paid-in capital.
Under Executive Order No. 133, which was dated January 27,
1987, subject is a line corporate agency of the Department of Trade and
Industry under the supervision of the Undersecretary for International Trade
(DTI). However, on August 9, 2004 by virtue of Executive Order No. 345, subject
was transferred from DTI to the Office of the President.
Legal
mandates:
-Executive Order No. 442 - Designates Philippine
International Trading Corporation as the lead coordinating agency to make
quality medicines available, affordable and accessible to the greater masses of
Filipino.
-Executive Order No. 345 -
Philippine International Trading Corporation, created by virtue of
Presidential Decree No. 252 (s.1973), as amended, has been designated as a key
agency in the implementation of the President’s 10-Point Legacy that will be
pursued by her administration in the next (6) years.
-Executive Order No. 756 - It needs to strengthen the
Philippine International Trading Corporation in accordance with its expanded
role in the promotion and development of Philippine trade in complementation
with efforts of the private sector.
Corporate Structure
Parent
Company:
National Development Company
Shareholders
|
2-1 |
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|
Name: |
NATIONAL DEVELOPMENT COMPANY |
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% of Shares: |
99.5% |
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2-2 |
|
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Name: |
DEVELOPMENT BANK OF THE PHILIPPINES |
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% of Shares: |
0.5% |
Management Information
Management:
|
6-1 |
|
|
Name: |
JUDAN, JORGE M. |
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Position: |
President |
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6-2 |
|
|
Name: |
RIVERA, TEDDIE ELSON E. |
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Position: |
Executive Vice President |
|
6-3 |
|
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Name: |
DOMONDON, CARMELITA BELEN |
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Position: |
Vice President – Financial/ Commercial Services Group |
|
6-4 |
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Name: |
MAGCASE, MA. VICTORIA C. |
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Position: |
Vice President – Countertrade/ Affairs |
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6-5 |
|
|
Name: |
LEYGO, MARIO M. |
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Position: |
Vice President – International Trading Group |
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6-6 |
|
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Name: |
EBRIEGA, CHRISTABELLE P. |
|
Position: |
Head of Corporate Planning/ Management |
Per source, Mr. Roberto M. Pagdanganan was subject’s former
Chairman and Chief Executive Officer who resigned shortly before the 2007 campaign
period for local elections when he ran for governor in the province of Bulacan.
Mr. Pagdanganan’s replacement has yet to be appointed by Malacañang.
Operation
|
Activities |
|
|
Engaged in export, import and marketing of a wide range of
commodities, industrial products and consumer goods |
|
|
Established to pioneer Philippine trade with the Socialist
and Other Centrally Planned Economy Countries (SOCPEC), and was given a broad
mandate by the Philippine government to be a prime mover in the expansion of
Philippine trade worldwide. It has embarked in various innovative trading
activities and implemented facilitative trade-related services directed at
the attainment of its two-pronged objective: the expansion of market for
Philippine products, and the stabilization of prices and supplies of
essential raw materials and commodities for local industries and consumers. |
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|
Services include market information; sales promotion; product
sourcing; product development; raw materials assistance; quality assurance;
bilateral trade negotiations; counter-trade; merchandising; and logistics. |
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Provides financial assistance to market producers by
offering collateral-free credit facilities to small and medium scale export
producers |
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|
Promotes a wide range of Philippine products such as
apparel, footwear and leather craft, gifts and house ware items, furniture
and woodworks, food products, construction materials, appliances, fertilizers,
coconut oil, and electrical products, among others |
|
|
Trading is made with other countries such as the United
States, Canada, Japan, Spain, Hong Kong, Singapore, Vietnam, European
countries, Middle East countries, Australia, Bulgaria, and Romania. |
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|
Major
business activities are: Pharmaceuticals Subject is the lead implementing agency
for the government’s parallel importation program for pharmaceuticals which
sought to improve public access to high quality, branded medicines for some of
the most common, life-threatening ailments. Subject’s efforts are directed at
making these low-priced drugs available in a number of government-owned
hospitals and facilities. It was also
designated as a key government institution in the implementation of President
Gloria Macapagal-Arroyo’s pro-poor programs, among them the reduction in
prices of medicines in half by 2010. (Medium Term Philippine Development Plan
2005-2010). Subject has further set programs which will ensure that essential
medicines are available, accessible and affordable to the Filipino people.
One initiative which seeks to expand the marketing and distribution network
for high quality, low cost medicines is the Botika ng Bayan program, which
subject undertakes in close coordination with the Department of Health (DOH)
and the Bureau of Food and Drugs (BFAD). Under this program, subject will
accredit privately-operated retail drugstores nationwide. Each outlet will
distribute a full range of branded and generic, over-the-counter and prescription
medicines, and home remedies. The Botika ng Bayan seal will be the mark of
guaranteed quality and affordable prices. |
|
|
Government Outsourcing Services Subject offers itself as
an alternative outsourcing arm for government procurement projects, ensuring
greater transparency, cost-efficiency, and speed of implementation. Taking off from its contract sales
experience with foreign buyers particularly for hotels, resorts and
restaurants, subject has developed capabilities to facilitate procurement of
various requirements for products ranging from office uniforms to furniture
to capital equipment. Various government agencies and government-owned
corporations have availed of subject’s procurement services. Working with a
consortium of manufacturers, subject has supplied custom-made office uniforms
for the Supreme Court of the Philippines, Clark Development Corporation and
the Bureau of Customs, among others.
Other clients for office refurbishing and renovation are the National
Transmission Corporation, the Philippine International Convention Center and
the Bangko Sentral ng Pilipinas. |
|
|
Counter-trade Subject implements the Counter-trade Program
of the Philippine Government, utilizing government foreign procurement
projects as a leverage to encourage foreign suppliers to purchase Philippine
products or channel investments and technology into priority government
sectors and strategic local industries. By virtue of Executive Order No. 120 (series
of 1993), subject is mandated to administer and manage this key program to
ensure the integration of counter-trade in government contracts involving
procurement of foreign capital equipment, machinery, products, technology,
supplies and services worth at least US$1 Million. In the past years, subject
has facilitated counter-trade projects in relation to the procurement of the
Armed Forces of the Philippines (AFP), National Food Authority (NFA),
Philippine National Police (PNP), and Philippine Coast Guard (PCG) among
others. It has also implemented “Debt for Goods” arrangements which paved the
way for the entry of Philippine products to countries such as Romania, China
and Iraq . This has enabled key industry sectors to develop and expand new
markets and products for export, acquire sophisticated technology, obtain
foreign direct investments and avail of specialized technical/training. |
|
|
International Trading Imports Subject plays a key role in
the government’s price and supply stabilization programs through the
strategic bulk importation of essential raw materials and critical
commodities. In the recent years, subject has developed wide experience in
the importation of such basic products as rice for domestic distribution, and
sugar for the local food processing sector. It has also undertaken
importation of urea fertilizer for the countryside farmers, and the dairy
cattle needs of the national dairy industry. It has been actively involved in
importation programs to address specific concerns of local businesses. It has assisted the local transport
industry by bringing in imported used engines and transmissions for jeeps and
buses, resulting in the substantial reduction of domestic prices. To service
the needs of the furniture industry, subject stockpiled rattan poles and
other raw materials to ensure their availability to meet the growing demand
for Philippine-made furniture both in the domestic and international markets.
It has also ventured into cement importation in an effort to provide steady
supply during the construction boom.
Exports: Subject has professional experience and expertise in the
export of a wide range of commodities, industrial products and consumer
products. It undertakes export trading, working with a network of Philippine
manufacturers, offering them a range of trade-related services to
successfully bring the Philippine products to the global arena. In the past,
subject operated a number of overseas offices and showrooms in strategic
locations such as the United States, Japan, Australia, Hong Kong, China,
Russia, The Netherlands and Vietnam. Subject also marketed Philippine
products by participating in international events and trade fairs. At present, subject works with
international marketing representatives and agents who can provide assistance
in gaining stronger presence in the target markets. With its trading
leverage, subject utilizes innovative and non-traditional approaches to
export marketing, thus successfully penetrating markets that are otherwise
difficult to enter. For the
international buyer, subject provides a whole range of services designed to
make purchasing from the Philippines a worry-free experience. From order
consolidation, production monitoring, quality inspection, to shipping
coordination, subject ensures that the buyer’s specifications are met. On the supply side, subject is constantly
on the look-out for Philippine products with world market potential, and
provide consultancy services designed to assist exporters, especially the
small and medium scale, to become more competitive internationally. Subject
assists manufacturers in identifying reliable sources of raw materials, and
facilitates actual importation of these materials for use in production for
export. To see an export transaction to its final stages, subject facilitates
export documentation to guarantee shipment and payment. |
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|
Sales/Purchases Information |
|
|
Import: |
Yes |
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Export: |
Yes |
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Selling Terms: |
Revenues are earned from trading, freight, trade financing,
service, and interest income. |
|
Territory: |
National & international |
|
Premises |
|
|
Headquarters and administrative office at captioned
address. Located in a central business section on a side street. |
|
|
Occupies the entire 3rd to 5th floors and half of the 10th
floor in a multi-storey building |
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Operates two warehouses in Cebu and another at 2345 Aurora
Boulevard, Pasay City |
|
|
Maintained liaison offices in China, Japan, Australia, Bahrain,
Brunei, Canada, Hong Kong, Kuwait, London, Saudi Arabia, Singapore, Spain,
Taiwan, and United States. These have been closed to cut down on overhead
expenses. |
|
Financial Figures
Following are subject’s financial highlights:
Unit: PHP
|
|
2006 |
2005 |
|
Current Assets |
254,930,165 |
415,864,398 |
|
Current Liabilities |
112,001,122 |
289,277,112 |
|
Accounts Receivable |
138,735,820 |
171,132,237 |
|
Inventory |
46,119,903 |
100,437,451 |
|
Total Assets |
371,004,060 |
506,131,244 |
|
Total Liabilities |
151,380,640 |
327,736,963 |
|
Total Equities |
219,623,420 (USD
5,065,680) |
178,394,281 (USD
4,114,718) |
|
Net Sales |
275,622,413 (USD
6,357,314) |
221,399,443 (USD
5,106,645) |
|
Cost of Sales |
253,733,748 |
200,688,581 |
|
Operating Expense |
129,668,973 |
97,610,035 |
|
Interest and Depreciation |
428,612 |
178,068 |
|
Income before Income Tax |
55,328,109 |
(20,736,855) |
|
Working Capital (ca-cl) |
142,929,043 |
126,587,286 |
|
EBITDA |
55,756,721 |
(20,558,787) |
|
Net Income |
55,328,109 (USD
1,276,159) |
(20,736,855) (USD
-478,302) |
|
Ratios |
|
|
|
Current Ratio |
2.28
|
1.44
|
|
Quick Ratio |
1.86
|
1.09
|
|
Receivable Turnover |
1.99
|
1.29
|
|
Inventory Turnover |
5.50
|
2.00
|
|
Gross Profit Margin |
0.08
|
0.09
|
|
Net Profit Margin |
0.20
|
-0.09
|
|
Return on Equity |
0.25
|
-0.12
|
|
Return on Assets |
0.15
|
-0.04
|
|
Debt to Equity |
0.69
|
1.84
|
(As of 2007.11, 1 PHP = 0.0230653
USD)
Attached are the 2006-2005 audited financial statements.
Payment
Supplier
No. 1
|
Date Checked |
Products Purchased |
Paying Habit |
Credit Line |
Outstanding Balance |
Past Due |
Credit Terms |
|
05.2007 |
Shipping services |
Prompt |
Open |
None |
None |
Cash or 7 days |
An old client. No experience of bouncing check.
Bankers
Union Bank of the Philippines, Philippine National Bank,
Land Bank of the Philippines, and Development Bank of the Philippines
Verification of deposits, if any, prohibited under
Philippine laws.
Subject: PHILIPPINE INTERNATIONAL TRADING CORPORATION
|
No |
Collateral/ Security |
Co Maker's Name |
Loan Type |
Loan Status |
Outstanding Amount |
Market Gain/ Loss |
Secured Amount |
Unsecured Amount |
|
1. |
Other Securities |
|
Demand Loans |
Current |
1,873,526.18 |
0.00 |
0.00 |
1,873,526.18 |
|
2. |
Other Securities |
|
Customers’ Liability for this Bank’s Acceptances
Outstanding |
Current |
17,083,922.63 |
0.00 |
0.00 |
17,083,922.63 |
Subject: PHILIPPINE INTERNATIONAL TRADING CORPORATION
|
No |
Loan Status |
Outstanding Amount |
Accumulated Amortization |
Accumulated Gain/Loss |
Debit Instrument Type |
|
1. |
Current |
1,000,000.00 |
0.00 |
0.00 |
Available for Sale Securities (ASS) – Private |
Public Records
PHILIPPINE INTERNATIONAL TRADING CORP. not found in our
database of companies/ individuals with labor related cases
COURT
CASES RESULTS
1.
PHILIPPINE INTERNATIONAL TRADING CORPORATION
Case Number: 69658
Courts: REGIONAL TRIAL COURT
Branch: 68
Case Type: ANNULMENT OF SALE
Plaintiff Name: ZAPANTA FE UMALE
Date Filed: 10/9/2003
City: PASIG CITY
Remarks: RE-RAFFLED TO BR. 268 ON 07/14/2005
2.
PHILIPPINE INTERNATIONAL TRADING CORPORATION
Case Number: 70460 PSG
Courts: REGIONAL TRIAL COURT
Branch: 152
Case Type: RECOVERY OF OWNERSHIP
Plaintiff Name: SYSTEM FACTORS COMPANY
Date Filed: 8/1/2005
City: PASIG CITY
Special Note
NEWS
Manila Times (October 12, 2007) Dr. Reddy’s Laboratories Ltd.
has entered the Philippine market and plans to give multinational drug
companies a run for their money. Rajesh
Kumar, Dr. Reddy’s senior director, said the local market has a big gap for
affordable medicines, adding the company sees the opportunity to offer
reasonably priced drugs that have long been available in India. “People can
hardly access inexpensive medicine because the market is dominated by
high-priced drugs patented to multinational companies, “ Kumar said. Dr.
Reddy’s is the biggest player in the Indian pharmaceutical sector and has
offices in Russia, China, Central Eastern Europe, the Middle East and Africa,
Latin America, Southeast Asia, and South Africa. In these markets, the company
offers a wide range of formulations through distribution channels, strategic
partnerships and joint ventures. The Indian drug giant recently acquired
Betapharma, the world’s fourth largest drug manufacturing facility based in
Germany, to augment its capacity for raw materials and finished formulations.
Kumar said that Dr. Reddy’s will force multinational companies “ to price their
products within the reach of most people.” In terms of product range, 10
percent of Dr. Reddy’s formulations is anti infective; 5 percent, pediatrics; 4
percent, dermatologic; 6 percent, oncology; 15 percent, cardiovascular; 21
percent, pain management; 24 percent, gastro-intestinal; and 12 percent, for
miscellaneous health conditions. Antony Raj Gomes, Dr. Reddy’s senior director
for quality control, said the company invests heavily in generic drugs as much
as branded ones, adding, “We produce not just the final product [capsules and
pills] for retail but also raw materials for shipment anywhere in the world.”
Gomes challenged rumors that the quality of Indian medicines is inferior, adding
the firm’s research and development efforts are equal for branded and generic
products. “Equal efforts and resources are being poured into the same superior
quality for all our products,” he said. Furthermore, Dr. Reddy’s medicines have
passed the stringent tests of the United States Food and Drug Administration,
he said, adding 46 percent of the company’s products are marketed in the US
followed by the European market. Kumar said the company is willing to sell
directly to the government through state-run Philippine International Trading
Corp. so it could beef up its stock for the lower class market. Dr. Reddy was
brought to the Philippines by Britton Marketing Corp. and was launched in Cebu,
Davao and Manila. Its global brands include Omez (Omeprazole), Enam
(Enalapril), Ciprolet (Ciprofloxacin), Stamlo (Amlodipine), Nise (Nimesulide),
Ketorol (Keterolac), and Grafeel (Filgrastim).
Philippine Daily Inquirer (October 7, 2007) It appears that
the government’s Botika ng Barangay (BnB or Pharmacy of the Village) is poised
to become the "fastest growing drugstore chain in the country." This
after President Gloria Macapagal Arroyo said that the poor's access to quality
and affordable medicine "can only be made possible if BnBs are spread
throughout the land. Saying that drugs
must both be affordable and accessible, the President said there was "no
better way to guarantee the latter than by letting the people themselves own
and run their own pharmacies." She said that Rep. Antonio Alvarez, chair
of the House committee on trade and industry, was right when he put forward the
need to increase the number of BnBs in the country. The BnB, she said, was just "one in the constellation of
government-owned dispensaries," as she pointed out drug stores run by
cooperatives, and some which are in military and police commissaries. She said
that she sought P150 million for the expansion of BnBs and that this would form
part of the total medicine purchase budget for 2008. The President said the
additional P52 million would be good for 2,000 branches. Arroyo issued other
directives to step up the "roll-out and widen the reach of the BnB. These
are the following: 1. To the extent allowed by law, the procurement service of
the DBM shall sell Philippine International Trading Corp. pharmaceutical
products in its depots and commissaries. It shall serve as a drug central that
will serve as a distribution point of cheap medicines. Its inventory shall now
include pharmaceuticals. 2. A variant of the BnB shall be set up in state
universities and colleges (SUCs). These will allow students to buy medicines
not only for themselves but for family members left at home.
The Freeman (September 9, 2007) State-owned Philippine
International Trade Corporation Pharma Inc. (PITC Pharma) is set to promote the
locally-owned pharmaceutical companies in the country that offers cheaper
medicines to Filipino consumers. PITC Pharma Inc., which is created by the
government to serve as a bulk buyer and trading corporation to distribute
cheaper but quality medicines to Filipinos will be strongly supporting the
local pharmaceuticals over the multinationals in offering medicines at their
actual cost. Filipino consumers are buying the most expensive medicines in the
world and this has got to stop with the massive support extended by the
government to local pharmacies through PITC Pharma, said PITC Pharma chief
operating officer (CEO) Teddie Elson E. Rivera. At present, there are a total
of 27 big Filipino-owned pharmaceutical companies, 15 of which are already closely
coordinating with PITC Pharma to distribute their medicines to 8,000
"Botica Ng Bayan" stores all over the country. According to Rivera,
PITC Pharma is going to tap the over 150 locally operated pharmaceutical
companies and traders in the country, to promote the locally branded medicines
and generics. Rivera said the focus of the PITC Pharma is to encourage and push
these local pharmaceuticals to develop more brands in the 16 essential
medicines, which include paracetamol, cough relief, anti-biotic, pain reliever,
hypertension medicines, among others. In Cebu, the International Pharmaceutical
Inc. (IPI) is the largest Cebu-based pharmaceutical company. Former president
and chairman of PITC, who now leads a non-government organization (NGO) called
HealthWatch, Roberto Pagdanganan, said PITC will be supporting the House Bill
6035, or the Half Price Medicine Bill. According to Pagdanganan PITC and other
NGOs will be working hard to push for the passage of the bill in order to
protect the local pharmaceutical industry. Earlier, President Gloria Macapagal
Arroyo vowed to compete with international drug companies in an attempt to
expand low-cost medicine program of the government. Arroyo stressed she would
not let giant drug laboratories to get in the way of the passage of the cheap
medicine bill. Pagdanganan emphasized that more locally-operated pharmaceutical
companies will be introducing new medicine products before the end of the year.
And these will be distributed via the "Botica Ng Bayan" and "Botica
Sa Barangay" networks. PITC has three ways to push the wide distribution
of cheap but quality medicines, these are through the implementation of
parallel drug important (of branded medicines) mostly from India and Pakistan;
supporting the locally branded generics; and Engaging into true-generics
campaign.
ECONOMIC OVERVIEW (As of Second
Quarter 2007)
Economic output is estimated to have grown by 6.6% (IDEA) in
the first half of the year, 1 percentage point higher than the first-half outcome
in 2006. Consequently, the government and various private entities have
upgraded their GDP projections, indicating strong expectations of a solid
finish in 2007 and heightened optimism in the Philippine economy. The
government, for example, has raised its GDP growth forecast to 6.1-6.8% from
5.8-6.6%.
IDEA’s estimates show that economic output is poised to grow
at around 6.4% for 2007 and 2008. On the production side, the largest
contribution to growth will come from the Services sector, which is projected
to grow at 9.0% this year and the following year. This sector, in turn, is
pulled up by good prospects in the Finance, Trade, and Transport, Storage and
Communication sectors.
On the demand side, personal consumption demand will
continue to push growth forward. Government expenditures are also expected to
increase with the approval of the P1.1T budget and the wage increase of
government employees.
Capital formation, however, seems to be the weak link in the
output demand equation. Although the trend has improved from the registered
8.8% decline in 2005 to 2.7% growth in 2006, the share of capital formation to
GDP has decreased from 18% in 2005 to 17% in 2006. Moreover, a concern is
raised on the sustainability of public construction given the unmet revenue
targets and the goal of a balanced budget by 2008.
In sum, although the progress of the economy is slower than
that of most other economies in the region, the sustained and improving picture
of overall economic activity is notable considering the observed boom-and-bust
behavior of the economy in the past. A sustained decent growth will hopefully
facilitate the trickling down of economic gains to the micro-level. Analysis of
figures at the household level, however, will have to wait until the release of
the 2006 Family Income and Expenditure Survey.
All in all, there is no reason for the government to relax
and take refuge in the comforting economic figures and the continuously
increasing inflow of remittances. It remains to be seen if the government can
deliver on its promises of infrastructure and a balanced budget by 2008. The
good economic prospect is, as always, conditional on the events that will
transpire in the next semester of the year.
Source: Institute for Development and Econometric Analysis
(IDEA)
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. |
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%)