MIRA
INFORM REPORT
|
Report Date : |
20.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
YEUN CHYANG INDUSTRIAL CO LTD |
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Registered Office : |
270 Chung Shan Rd Section 4 Chichou, Hsiang Changhwa Hsien
524 |
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Country : |
Taiwan |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
31.01.1973 |
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Com. Reg. No.: |
59068700 |
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Legal Form : |
Public Listed Company |
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Line of Business : |
Manufacturing of a range of stainless steel products and materials Marketing and selling to both domestic and international markets. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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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Maximum Credit Limit : |
Up To USD 8,000,000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
YEUN CHYANG INDUSTRIAL CO LTD
270 CHUNG SHAN RD SECTION 4 CHICHOU
HSIANG CHANGHWA HSIEN 524, TAIWAN
TEL : 886- 4-8899666
FAX : 886-4-8899768
EXECUTIVE SUMMARY
INCORPORATION DATE :
JANUARY 31, 1973
REGISTRATION NO. :
59068700
LEGAL FORM :
PUBLIC LISTED COMPANY
CHIEF EXECUTIVE :
MR. CHING-KO CHANG (CHAIRMAN)
STAFF STRENGTH :
596
CAPITAL :
US$ 108,761,329
BUSINESS LINE :
MANUFACTURER
TURNOVER :
NTD 6,346,854,000 (AS OF MAR. 31, 2007)
EQUITIES :
NTD 5,756,398,000 (AS OF MAR. 31, 2007)
PAYMENT :
EXCELLENT
RECOMM. CREDIT RANGE : UP TO
USD 8,000,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE :
TWD 33.07096 = US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
M - million
TWD –Taiwan New Dollars
*Company History*
================
1974 - Started
with a small factory with 30 employees.
1986 - Maintains
60 workers in its factory.
1987 - Began direct
exports of its products overseas
- Local
sales increased steadily
1989 - Relocated
its Taipei branch office and completed its second plant in Taipei.
2001 - Listed on
the Taiwan Stock Exchange.
*Capital Details*
=============
Initial paid up capital
: NTD 19,800,000.00
Capital increases/decrease as follows :
Year
Amount (NTD)
------
---------------------
1983 39,600,000.00
1988
99,000,000.00
1995
149,000,000.00
1996
199,002,000.00
1998
788,000,000.00
1999
945,600,000.00
2000 1,087,440,000.00
2001
1,056,560,000.00
2003
1,117,600,000.00
2004
1,292,700,000.00
2005
1,492,860,000.00
2006
2,184,330,000.00
2007 2,698,173,100.00
*Office & Facilities*
===============
Size :
6,732 square meter (Approx)
Location : Chichou
Hsiang
Type of building : Industrial
building
Property status : Owned by
YEUN CHYANG INDUSTRIAL CO LTD
Comments : Serves as
office and factory.
Other contact details
----------------------------
Fax nos. :
4-8899783 / 8899770
E-mail addresses : ychyang@mail.yuenchyang.com.tw
philtan@mail.yeunchyang.com.tw
alex@mail.yeunchyang.com.tw
binsin@mail.yeunchyang.com.tw
jackie@mail.yeunchyang.com.tw
ychinet@ms16.hinet.net
mark@mail.yeunchyang.com.tw
cmy@mail.yeunchyang.com.tw
yftony@mail.yeunchyang.com.tw
yf@mail.yeunchyang.com.tw
ycy2@mail.yeunchyang.com.tw
yq@mail.yeunchyang.com.tw
Previous contact details
--------------------------------
(1)
Address : Ta Fa
Industrial Park 16 Chu Kuang 2nd St, 831
Tel no. :
7-7873411
Fax no. :
7-7872901
(2)
Address : 11 Wu
Chuan 2nd Rd
Fax no. :
2-22991267
(3)
Fax no. :
4-8295089
*Factories, Size & Locations*
=====================
The firm maintains two (2) manufacturing premises which includes:
Size : 1,438
square meter (Approx)
Location : Puhsin
Hsiang
Type of building : Industrial building
Property status : Owned by YEUN
CHYANG INDUSTRIAL CO LTD
Comments : Serves as
factory
*Corporate & Organization Structure*
============================
A large-sized company operated and managed by an experienced team of
professionals.
*Licenses & Permits*
=================
(1)
License number : 9964602300
Date issued : 26 June,
1974
Issuing authority : Industrial
Development Bureau, MOEA
Type of license : Factory
license
(2)
License number : 9964601800
Date issued : 13
November, 2000
Issuing authority : Industrial
Development Bureau, MOEA
Type of license : Factory
license
*Industry Ranking*
===============
Generally regarded as one of the Top 1000 Companies in manufacturing
industry of Taiwan.
Detail of rank follow :
Year Rank
---- ----
2004 263
2005 250
2006 158
*Accountants*
===========
- CHINA CPAs
*Registrar*
=========
SINOPAC SECURITIES CO LTD
*Reputation*
==========
Reference checking for the purpose of establishing the firm's reputation
within the respective industry failed to reveal any negative information.
Web
site: www.yeunchyang.com.tw the
design is professional and the content is well organized. At present it is both
in Chinese and English versions.
E-mail: ys@mail.yuenchyang.com.tw
For the past two years there is no record of litigation.
*Major Shareholders*
================
Shareholders' Name No of Shares
-------------------------- ------------------
TAI CHIANG INVESTMENT CO LTD 33,446,427
Mr. Tien-shang Hsieh 2,762,812
Mr. Sung-lin Shih 1,305,576
Mr. Chin-yu Chang 788,941
Mr. Chen-hsiung Pan
180,321
Mr. Tai-shan Chen 167,379
Mr. Tony Lieh-lin Chan 119,915
Mr. Ming-hsin Hsu 119,915
Mr. Chi-hsiung Chiu 71,980
Management: Ms. Yu-hsing Huang,
Manager
Mr. Ming-yu Chen, Director
Mr. Wei-li Lee, Manager
Name Nationality
Job Description Dept. / Division
Ms. Yu-hsing Huang Taiwanese
Manager Account
Mr. Ming-yu Chen Taiwanese
Director Administration
Mr. Wei-li Lee Taiwanese
Manager Audit
Mr. Ju-chin Chang Taiwanese
Director Factory
Mr. Tony Lieh-lin Chan Taiwanese
Director Finance
Mr. Phil Wei-ming Chen Taiwanese
Director Marketing
Mr. Alex Chao-yang Chang Taiwanese
Manager Marketing
Mr. Tzu-hsing Tsai Taiwanese
Director Production
Mr. Sheng-yu Chiu Taiwanese Manager Production
Mr. Mark Han-chou Chang Taiwanese
Manager Quality Control
Mr. Ming-hsin Hsu Taiwanese
Director Sales
Mr. Chin-hsien Cheng Taiwanese
Manager Sales
Mr. Tony Chin-peng Chang Taiwanese
Manager Sales
Ms. Sandy Shu-ying Chang Taiwanese
Manager Sales
Mr. Chin-yu Chang Taiwanese
General Manager
*Key Personnel*
=============
Mr. Ching-ko Chang
Founder :
Co-founder
Work experience : More than 30 years experience.
Responsibilities : Handles the
daily operation of the firm including all financials, sales and legal matters.
Resident status : Taiwan
*Main Products & Services*
======================
Specializes in the following areas of work :
1. Manufacturing of a range of stainless steel products and materials
2. Marketing and selling to both domestic and international markets.
Stainless steel pipes passed the following tests:
- Hydrostatic
- Flattening
- Flaring
- Reverse Flattening
- Reverse bending
- Tension
Products: Coils, stainless steel
Gas
chromatograph
Plates, stainless
steel
Stainless
steel
Stainless steel
pipes
*Brand*
======
YC
YEUN CHYANG
*Payment Terms*
=============
Sales
------
Local : 30 - 90 days credit
Cash
Export : Letter of Credit (L/C)
Telegraphic
Transfer (T/T)
Purchases
--------------
Local : 30 - 90 days credit
Import : Letter of Credit (L/C)
Telegraphic
Transfer (T/T)
Open account /DA
terms with settlement using Telegraphic Transfer (T/T)
*Machinery & Equipment*
=====================
Machinery/Equipment include:
- Pipe Making Machines
- Heat Treatment Processing Machinery
- Chamfering Machine
- Pickles
- Cutters
- Buffing Machines
*Associations*
============
Member of :
- Taiwan Steel & Iron Association
*Competitors*
===========
The following locally based companies supply similar range of products :
- KAI CHING INDUSTRY CORP
- TON YI INDUSTRIAL CORP
- KOOLAND IRON & STEEL WORKS LTD
- RIGHT WAY INDUSTRIAL CO LTD
- FOREVER FORTUNE STEEL CO LTD
- RAY & ROD INT'L LTD
- TRUEMARK INDUSTRIAL CORP
- CHING HAI ENTERPRISE CO LTD
- JAN METAL INDUSTRY CO LTD
- YIEH MAU CORP
*Quality Certification*
==================
Type of certification : ISO 9002
Year of certification : 1994
Certified Items :
Hardware Products and Building Materials
*Sub-contractors*
=============
Pipe fittings are sub-contracted to it's affiliate companies.
*Domestic Raw Material Supplier*
==========================
Major local suppliers include:
(1)
Company name : TANG ENG
IRON WORKS CO LTD
Material/Component : Stainless steel
Quantity supplied : 10,000 tons per year
(2)
Company name : YIEH
UNITED STEEL CORP
*Imports*
========
Products such as stainless steel are imported from Japan
*Local Distribution Network*
=======================
Approximately 31% of the annual turnover is attributed to local sales.
*Export Markets*
=============
Approximately 69% of the annual turnover is attributed to export.
Breakdown of exports as per country is as follows:
Country % of Exports
------------
-----------------
Europe 29
Asia
26
Australia 7
USA 4
Africa 3
*International Trade Ranking*
======================
The firm has been ranked among Taiwan's Top Importers/Exporters based on
the standard measured by the Board of Foreign Trade (BOFT)
Details of rank are as follows :
Year Rank
------ -------
1997 0081
2001 0670
2002 0757
2003 0635
2004 0360
2005 0252
*LOCAL BRANCHES & MANAGEMENT*
================================
Branch : YEUN CHYANG INDUSTRIAL
CO LTD - WUKU HSIANG
Branch Address : 2Fl Wuku Industrial Park 22, Lane 116, Wu Kung 2nd Rd
Wuku Hsiang, Taipei Hsien 248
Branch Tel : [+886] 2-22991266
Branch Fax : [+886] 2-22991277
Branch Email : ychyang.ysn@msa.hinet.net
Branch Employees : 15
Branch Management
Name Job Description Nationality
Mr. Chin-hsien Cheng Manager Taiwanese
Branch : YEUN CHYANG INDUSTRIAL CO LTD - TALIAO HSIANG
Branch Address : 2Fl, 293, Chung Cheng Rd Niaosung Hsiang, Kaohsiung
Hsien 833
Branch Tel : [+886] 7-7335568
Branch Fax : [+886] 7-7335633
Branch Email : ychyang.ysh@msa.hinet.net
Branch Employees : 13
Branch Management
Name Job Description Nationality
Mr. Tony Chin-peng Chang Manager Taiwanese
Branch : YEUN CHYANG INDUSTRIAL CO LTD - PUHSIN HSIANG
Branch Address : 33 Yuan Lu Rd Section 4 Puhsin Hsiang, Changhwa Hsien
513
Branch Tel : [+886] 4-8292226
Branch Fax : [+886] 4-8292741
Branch Email : ychyang.ym@msa.hinet.net
Branch Employees : 150
Branch Management
Name Job Description Nationality
Mr. Ju-chin Chang Manager Taiwanese
*(Subsidiaries, Joint-ventures & Affiliates)
===============================
Company Name : CHI MAO INVESTMENT CO LTD
Address : 122 Yuan Lu Rd Yuanlin Chen 510 Changhwa Hsien Taiwan
Country : Taiwan
Relationship : Affiliate
Legal Form : Private company with limited liability
Company Type : Service
Industry : Financial Services - General
PAYMENT RATING : 1 OBTAINED SCORES : 90
|
Implication |
Implications |
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1 |
Scores 85–100 |
Excellent |
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2 |
Scores 75 – 84 |
Above Average |
|
3 |
Scores 50 – 74 |
Average |
|
4 |
Scores 35 – 49 |
Fair |
|
5 |
Scores 15 – 34 |
Below Average |
|
6 |
Scores 01 – 14 |
Poor |
|
NR |
No Data |
No Data |
The rating indicates the payment
pattern of SC based upon our Payment Database, comments from suppliers of SC,
information from banks (if available), as well as industrial sources.
Dealings on open terms may be possible for LARGE amounts depending on individual judgement experience.
*Bank Details*
===============
Bank Name : BANK OF TAIWAN
Branch : Chungcheng Dist, Taipei City
Branch Address : 120 Chung Ching South Rd Section 1 Chungcheng Dist
Taipei City 100 (Head Office)
SWIFT Code : BKTWTWTP
Bank Name : CHANG HWA COMMERCIAL BANK LTD
Branch : Central Dist, Taichung City
Branch Address : 38 Tzu Yu Rd Section 2 Central Dist Taichung City 400
(Head Office)
SWIFT Code : CCBCTWTP
Bank Name : CHINA DEVELOPMENT INDUSTRIAL BANK INC
Branch : Sungshan Dist, Taipei City
Branch Address : 13Fl CDC Tower 125 Nanking East Rd Section 5 Sungshan
Dist Taipei City 105 (Head Office)
SWIFT Code : CDIBTWTP
Bank Name : TAIWAN COOPERATIVE BANK
Branch : Chungcheng Dist, Taipei City
Branch Address : 77 Kuan Chien Rd Chungcheng Dist Taipei City 100 (Head
Office)
SWIFT Code : TACBTWTP
Bank Name : TAIPEI FUBON COMMERCIAL BANK CO LTD
Branch : Chungshan Dist, Taipei City
Branch Address : 50 Chung Shan North Rd Section 2 Chungshan Dist Taipei
City 104 (Head Office)
SWIFT Code : TPBKTWTP
*Financial History*
==============
1989 - Obtained an estimated
monthly turnover of over NTD 30 million.
Balance Sheet
Currency : NTD
Denomination : in Thousand
2002 2003 2004
2005 2006 31 March, 2007
-------- -------- --------
-------- -------- ---------------------
Current assets
1,198,566 1,472,474 2,704,153 3,148,517
6,842,701 7,255,116
Funds & long-term
investments 415,160 268,046 209,014 219,552 291,936
343,009
Property
1,135,242 1,156,812 1,175,687 1,268,556
1,760,785 1,965,941
Intangible assets
29,673 29,147 21,722
20,620 17,184 17,184
Other assets 21,005 23,642
46,814 60,457 99,510 104,134
Total assets
2,799,646 2,950,121 4,157,390
4,717,702 9,012,116 9,485,384
Current liabilities (Before)
892,990 915,184 998,444 1,203,684
3,230,641 2,761,154
(After) 899,332 1,051,491 1,514,410
1,218,012 -- --
Long-term liabilities
452,125 413,995 526,273 710,140
571,740 860,324
Other liabilities 84,799 93,994
98,891 97,612 104,006 107,508
Total liabilities (Before)
1,429,914 1,423,173 1,623,608 2,011,436
3,906,387 3,728,986
(After) 1,436,256
1,559,480 2,139,574 2,025,764 -- --
Common stock
10,565,651 1,117,600 1,292,697 1,492,864
2,184,335 2,245,460
Capital reserve 167,549 138,659
499,018 759,356 1,114,399 1,204,153
Retained Earnings (Before)
194,206 270,389 742,067 458,649
167,071 2,172,245
(After) 187,864 134,082
226,101 444,321 -- --
Income Statement
Currency : NTD
Denomination : in Thousand
2002 2003 2004
2005 2006 31 March, 2007
-------- -------- --------
-------- -------- ---------------------
Operating revenue
3,048,519 4,384,671 7,834,940 8,663,369
16,890,165 6,346,854
Gross profit 330,605 418,618 874,608 554,404 2,187,891
653,583
Operating income
151,457 195,551 589,958 232,290
1,633,819 491,349
Non-operating income
40,293 50,321 202,769 181,821
268,379 181,554
Non-operating expense
(63,167) (39,419) (34,403) (101,246)
(67,502) (34,137)
Net income 98,431 163,594 607,985 232,548
1,453,665 501,175
Earnings (losses)
per share (after) 0.85 1.46
5.09 1.37 7.73 2.3
*Financial Ratios*
==============
2002 2003 2004
2005 2006 31 March, 2007
-------- -------- -------- -------- --------
---------------------
Ratio of liabilities to assets %
51.08 48.24 39.05 42.64
43.34 29.1
Ratio of long-term capital to
fixed assets % 160.48 167.78 260.28
269.31 322.43 374.68
Current ratio % 134.22 160.89
270.84 261.57 211.8 262.75
Quick ratio % 74.82 87.04
102.78 88.28 82.31 95.44
Interest coverage 3.29 7.84
38.28 12.74 30.44 20.25
Turnover of receivable (times)
6.01 6.93 10.04 10.57
11.85 12.44
Average collection period
of receivable 61 53 36 35
30 29
Turnover of inventories (times)
4.77 6.87 6.03 4.45
4.79 5.21
Turnover of expense (times) 52.10 54.43
42.42 41.57 46.48 51.54
Average days of sales 7 53 61 82
76 70
Turnover of fixed assets (times)
2.67 3.83 6.72 7.09
9.59 14.37
Turnover of total assets (times)
1.09 1.53 2.20 1.95
1.87 2.67
Return on total assets%
5.04 6.48 17.54 5.69
16.56 5.68
Return on shareholder's equity %
7.32 11.30 29.94 8.88 37.21 9.22
Operating income 14.33 17.50
46.43 15.56 75.24 22.49
Net income before tax
12.17 18.47 59.68 20.96
84.49 29.24
Profit margin% 3.23 3.73
7.77 2.68 8.6 7.89
Retroactive 0.70
1.20 4.17 1.37 7.73 2.3
Cash flows ratio% 26.70 15.84
(40.09) (7.08) (38.17) 8.92
Cash flows adequacy%
21.29 27.09 23.35 (11.27)
(25.08) (23.35)
Cash reinvestment ratio%
10.62 5.84 (14.65) (14.24)
(19.57) 3.39
Degree of operating leverage
2.37 2.14 1.45 2.12
1.23 1.18
Degree of financial leverage
1.59 1.18 1.04 1.13 1.03 1.07
*Financial Summary (Currency: U.S. $'s)
===============================
Year Sales Assets Net Income
1992 $35,437,500.00 $33,031,250.00 $743,750.00
1998 $88,740,740.74 $69,814,814.81 $2,555,555.56
2001 $80,876,378.41 $80,673,244.34 -$203,134.07
2002 $87,626,300.66 $80,472,722.05 $2,829,290.03
2003 $126,432,266.44 $85,066,926.18 $4,717,243.37
2004 $235,637,293.23 $125,034,285.71 $18,285,263.16
2005 $273,724,139.02 $149,058,515.01 $7,347,488.15
2006 $510,585,399.03 $272,433,978.23 $43,943,923.82
*Int´l Trade Activity (Currency: U.S. $'s)
=============================
Year Imports Exports Total
1992 $200,000.00 $6,800,000.00 $7,000,000.00
1996 $4,400,000.00 $14,800,000.00 $19,200,000.00
1997 $6,500,000.00 $19,100,000.00 $25,600,000.00
1998 $800,000.00 $32,100,000.00 $32,900,000.00
2004 $5,150,370.02 $100,898,443.01 $106,048,813.03
2005 $10,564,649.00 $147,586,070.02 $158,150,719.02
2006 $5,000,000.00 $161,000,000.00 $166,000,000.00
Over the past 34 years, SC has made a stable growth with satisfactory
profit. Credit dealings with SC in favorable terms can be considered.
Attached:
trade references
SIC PRODUCT CLASSIFICATION & ACTIVITY
Activity Code Product/Service Description
Exporting 3317 Steel
Pipe & Tubes
Exporting 3441 Fabricated
structural metal products,
Exporting 3462 Iron
& steel forgings
Importing 3316 Cold-Rolled
Steel Products
Importing 3325 Steel
Foundries, NEC
Importing 3569 General industrial machinery and
equipment, and parts,
Manufacturing 3317 Steel
Pipe & Tubes
Manufacturing 3441 Fabricated
structural metal products,
Manufacturing 3462 Iron
& steel forgings
HARMONIZED PRODUCT CLASSIFICATION & ACTIVITY
Activity Code Product/Service Description
Exporting 721913 Flat
rolled products of stainless steel of a width of 600mm or more; hot-
rolled
in coils; of a thickness of 3mm or more but not exceeding 4.75mm
Exporting 721935 Flat
rolled products of stainless steel of a width of 600mm or more; cold-rolled; of
a
thickness of less than 0.5mm
Exporting 7222190000 Other bars and rods of stainless steel, hot-rolled, other than
circular cross-
section
Exporting 7222300000 Other bars and rods stainless steel further worked than cold-
formed or cold-
finished)
Exporting 7306 Tubes,
pipes & hollow profiles, iron & steel
Exporting 7306401000 Other tubes, pipes and hollow profiles, welded, circular crs
sec, of stainless steel,
having
a wall thickness of less than 1.65 mm
Exporting 7306401015 Other stainless steel pipes, tubes, hollow profiles, welded,
circular cross section,
wall
under 1.65mm thick, over 0.5 percent nickel
Exporting 7306901000 Other tubes, pipes and hollow profiles, of iron or nonalloy
steel
Exporting 7307 Tube
or pipe fittings, of iron or steel
Exporting 7307225000 Stainless steel pipe elbows and bends
DETAILED PRODUCT CLASSIFICATION & ACTIVITY
Activity Product/Service Description
Importer Stainless
steel
Importer Steel cold and
hot rolled
Importer Gas
chromatograph
Manufacturer Tubes
Manufacturer Stainless steel
tubes
Manufacturer Stainless steel
pipes
Manufacturer Coils, stainless
steel
Manufacturer Plates, stainless
steel
INTERNATIONAL TRADE : ACTIVITY & MARKETS
Exporting to Africa
Exporting to Algeria
Exporting to Argentina
Exporting to Asia
Exporting to Australia
Exporting to Belgium
Exporting to Brazil
Exporting to Canada
Exporting to Chile
Exporting to China
Exporting to Colombia
Exporting to Costa Rica
Exporting to Croatia
Exporting to Cyprus
Exporting to Denmark
Exporting to Ecuador
Exporting to Egypt
Exporting to Estonia
Exporting to Europe
Exporting to Finland
Exporting to Greece
Exporting to Guatemala
Exporting to Honduras
Exporting to Hong Kong
Exporting to India
Exporting to Indonesia
Exporting to Iran
Exporting to Ireland
Exporting to Israel
Exporting to Italy
Exporting to Kenya
Exporting to Lebanon
Exporting to Macau
Exporting to Malaysia
Exporting to Mauritius
Exporting to Mexico
Exporting to Middle East
Exporting to Morocco
Exporting to New Zealand
Exporting to Nigeria
Exporting to North America
Exporting to Norway
Exporting to Oceania
Exporting to Pakistan
Exporting to Panama
Exporting to Philippines
Exporting to Poland
Exporting to Reunion
Exporting to Russia
Exporting to Singapore
Exporting to South Africa
Exporting to South America
Exporting to South Korea
Exporting to Spain
Exporting to Thailand
Exporting to Tunisia
Exporting to Turkey
Exporting to UAE
Exporting to USA
Exporting to Ukraine
Exporting to United Kingdom
Exporting to Venezuela
Exporting to Vietnam
Importing from Asia
Importing from Europe
Importing from Finland
Importing from France
Importing from Italy
Importing from Japan
Importing from North America
Importing from Sweden
Importing from USA
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%)