MIRA
INFORM REPORT
|
Report Date : |
07.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
HONAM PETROCHEMICAL CORPORATION |
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Registered Office : |
11th Fl., Lotte Gwanak Tower, 395-67, Sindaebang 2-dong, Dongjak-gu, Seoul 156-711 |
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Country : |
Korea |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
03.16.1976 |
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Com. Reg. No.: |
118-81-15012 |
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Legal Form : |
Listed Company |
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Line of Business : |
Manufacture of Basic Organic Petrochemicals |
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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Status : |
Very Good |
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|
|
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Payment Behaviour : |
Regular |
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|
|
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Litigation : |
Clear |
Basic
|
Company
Name |
HONAM PETROCHEMICAL
CORPORATION |
|
Registered Address |
395-67, Sindaebang 2-dong, Dongjak-gu,
Seoul, Korea |
|
Building |
11th Fl., Lotte Gwanak Tower |
|
Zip Code |
156-711 |
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Tel |
+82-2-829-4114 |
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Fax |
+82-2-843-1010 |
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E-mail |
Kilee@hpc.co.kr;bonsoo@hpc.co.kr;skchung@lottelpc.com |
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Website |
www.hpc.co.kr |
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Trading Address |
11th Fl., Lotte Gwanak Tower, 395-67,
Sindaebang 2-dong, Dongjak-gu, Seoul, Korea |
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Tel |
+82-2-829-4114 |
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Fax |
+82-2-843-1010 |
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Other Address- Factory II |
1-2, Wolha-dong, Yeosu-si, Jeollanam-do,
Korea |
|
Tel |
+82-61-688-2114 |
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Other Address- Yeosu Factory |
172, Jungheung-dong, Yeosu-si, Jeollanam-do, Korea |
|
Tel |
+82-61-688-2114 |
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Fax |
+82-61-688-2460 |
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Other Address- Research Lab |
24-1, Jang-dong, Yuseong-gu, Daejeon,
Korea |
|
Tel |
+82-42-861-6161 |
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Other Address-Daejeon Branch |
32, Hongdo-dong, Dong-gu, Daejeon, Korea |
|
Tel |
+82-42-635-2961 |
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Other Address-Busan Office |
394-8, Samnak-dong, Sasang-gu, Busan, Korea |
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Tel |
+82-51-301-5846 |
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Fax |
+82-51-301-5880 |
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Other Address-Daegu Branch |
3rd Fl., National Pension Corporation Daegu Bldg., 1198-5, Igok
2-dong, Dalseo-gu, Daegu, Korea |
|
Tel |
+82-53-593-7104 |
|
Fax |
+82-53-593-7108 |
|
Other Address-Gwangju |
Rm. 501, Dongsin Bldg., 150, Unam 2-dong, Buk-gu, Gwangju, Korea |
|
Tel |
+82-62-524-7870 |
|
Type |
Export/Import |
|
Industry |
Manufacture of Basic Organic Petrochemicals |
|
Main Business |
High Density Polyethylene(HDPE), Polypropylene(PP), Compounded
Polymer, Polyethylene Terephthalate(PET), Ethylene Glycol, Methyl
Methacrylate(MMA),BTX Product |
|
Established (mm/dd/yyyy) |
03/16/1976 |
The Subject owns the
premises of registered Yeosu Factory and Research Lab.
Detailed Products
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Polyethylene Terepthalate PET(13102020) |
|
Sell |
Polypropylene resin(13111019) |
|
Sell |
Resins(13111000) |
|
Sell |
Chemistry reagents or solutions(41116105) |
|
Sell |
High Density Polyethylene HDPE(13102017) |
|
Sell |
Organic derivatives and substituted
compounds(12352100) |
|
Sell |
Tea bags(50201713) |
|
Sell |
Laminated papers(14121700) |
|
Sell |
Inorganic compounds(12352300) |
|
Sell |
Alcohols or its substitutes(12352104) |
CEO’s
|
Name |
Shin Dong-Bin |
|
Date of Birth |
02/14/1955 |
|
Title |
Vice Chairman & CEO |
|
Sex |
Male |
|
Nationality |
Korean |
Profiles
|
Capital |
159,300,000,000 KRW |
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|
Employees |
1.012 |
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Formation |
Listed Company (Korea Stock Exchange : 011170) as of 05/31/1991 A Company of Lotte Group |
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Bank Details |
Woori Bank-Boramae Branch |
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Corporate Registered No. |
110111-0193196 |
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Business Registered No. |
118-81-15012 |
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Permit & Licenses |
08/01/1995 ISO 9001 12/1995 ISO 14001 Int’l Trade No.: 789015 |
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Shareholder Position |
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Company History |
03/1976 Foundation 04/1976 Imported technologies from Mitsui Petrochemical,
Mitsui Toatsu Chemical and UK Shell Development 12/1979 Commercial production of HDPE, PP,
and EOG 03/1979 Construction of PP, PE, EOG and UC
plants 06/1979 Privatization of domestic shares
(Lotte) 09/1984 Construction of Compound Resin
Factory (Gradual expansion) 06/1986 Launche of research institute 11/1988 Construction of the 2nd PP
plant 04/1988 Construction of the 2nd HDPE plant 01/1991 Moved labs to Daeduk R&D
complex 05/1991 Construction of the 2nd EOG
plant 04/1992 Launched operation of Naphtha
Cracking Center and BTX plant 08/1995 Attained ISO 9001 (Quality system)
certificate 11/1996 Attained ISO 14001 (Environmental
system) model certificate 01/1997 Designated as KOLAS nationally
authorized laboratory and attained UN MARK from Korean Register of
Shipping 06/1997 Expansion of the 3rd EOG
plant 05/1998 Launched operation of PET
plant 06/1999 Expansion of the 3rd HDPE
plant 02/2000 Launched operation of EOA
plant 11/2001 Completed revamping of Naphtha
Cracking Center and BTX plant, expansion of the 3rd PP plant 06/2001 Launched operation of MMA
plant 05/2003 Completed steam supply and power
plant, 3AS plant, Formed LG Chemical & HPC Consortium 06/2003 Acquired Hyundai Petrochemical 2nd
Complex 01/2004 Implemented ERP 11/2004 Acquired KP Chemical 12/2005 Honam petrochemical corp. entered
into a contract on introducing polycarbonate manufacturing technologies with
Asahi-Kasei, Japan. 01/2006 Honam petrochemical corp. entered into
a MOU on establishing MMA,PMMA joint venture with Mitsubishi Rayon,
Japan. 10/2006 Acquired Jiaxing Honam Engineering
Plastic Co., Ltd 06/2008 PC Plant Will be Completed. 06/27/2008 BOD decided to merge Lotte
Daesan Petrochemical Corporation(161411-0014684) as of 01/01/2009 |
The Subject Company
is a Korea-based producer of petrochemicals and related products. The Company
produces synthetic resins, which include high-density polyethylene (HDPE),
polypropylene (PP) and polyethylene terephthalate (PET) used for shopping bags,
boxes, containers, fibers, electronic appliances and PET bottles; basic
petrochemicals, including ethylene oxide, ethylene glycol, ethylene oxide
adduct (EOA) and methyl methacrylate (MMA) used for polyester fibers, surfactants
and antifreezing solutions, and basic chemicals, which include ethylene,
propylene and benzene used for polyethylene, PP and others. The Company also
manufactures synthetic paper. During the year ended December 31, 2007, sale of
synthetic resins accounted for approximately 48% of total revenue.
Management
|
Job Description |
Title |
Name |
Nationality |
Date of Birth |
Education |
|
Vice Chairman & CEO |
Mr. |
Shin Dong-Bin |
Korean |
1955.02.14 |
MBA, Columbia University-USA |
|
President & CEO |
Mr. |
Jung Beom-Sik |
Korean |
1948.08.06 |
Seoul National University |
|
Director |
Mr. |
Hur Soo-Young |
Korean |
1951.06.07 |
Seoul National University |
|
Director |
Mr. |
Kim Hong-Bae |
Korean |
1947.05.01 |
Hanyang University |
|
Director |
Mr. |
Kim Hwa-Yong |
Korean |
1950.03.21 |
Seoul National University |
|
Director |
Mr. |
Kim Yong-Kyu |
Korean |
1946.01.24 |
Sungkyunkwan University |
|
Director |
Mr. |
Sohn Tae-Hyung |
Korean |
1950.10.19 |
Sungkyunkwan University |
Financials
Unit: KRW
|
Year |
Sales |
Assets |
Net income |
|
2,255,268,363,372 |
3,587,375,456,169 |
463,359,940,843 |
|
|
2006 |
2,181,315,418,229 |
2,997,624,545,038 |
381,592,272,590 |
|
2005 |
2,112,793,648,507 |
2,791,475,554,945 |
511,431,593,224 |
|
2004 |
1,952,094,050,240 |
2,318,300,810,683 |
535,258,456,479 |
Financial Description
Unit: KRW
|
Authorized
Capital |
500,000,000,000 |
|
Paid-Up
Capital |
159,300,000,000 |
|
Total Issues Shares |
31,860,000 |
Balance
Sheet
|
Unit : Korean Won |
01/01/2008~03/31/2008 |
As of 12/31/2007 |
As of 12/31/2006 |
|
Total Assets |
3,732,838,065,882 |
3,587,375,456,169 |
2,997,624,545,038 |
|
Current Assets |
1,041,393,659,766 |
1,003,828,957,439 |
943,162,021,807 |
|
-Quick Assets |
828,616,608,513 |
793,159,481,746 |
778,480,533,097 |
|
-Inventories |
212,777,051,253 |
210,669,475,693 |
164,681,488,710 |
|
Fixed Assets |
2,691,444,406,116 |
2,583,546,498,730 |
2,054,462,523,231 |
|
-Investment |
1,943,629,680,373 |
1,881,064,961,981 |
1,539,802,764,996 |
|
-Tangibles |
742,315,559,925 |
696,581,989,441 |
506,834,107,494 |
|
-Intangibles |
1,398,308,095 |
1,881,640,225 |
4,255,957,514 |
|
-Others |
4,100,857,723 |
4,017,907,083 |
3,569,693,227 |
|
Total Liabilities |
791,553,812,180 |
710,736,805,351 |
558,044,187,807 |
|
Current Liabilities |
487,863,052,021 |
417,431,230,195 |
331,087,902,923 |
|
Fixed Liabilities |
303,690,760,159 |
293,305,575,156 |
226,956,284,884 |
|
Capital Stock |
159,300,000,000 |
159,300,000,000 |
159,300,000,000 |
|
Capital Surplus |
473,611,947,869 |
473,611,947,869 |
473,611,947,869 |
|
Profit Surplus |
2,303,162,033,795 |
2,237,224,903,644 |
1,795,622,418,272 |
|
Capital Adjustment |
5,210,272,038 |
6,501,799,305 |
11,045,991,090 |
|
Total Equity |
2,941,284,253,702 |
2,876,638,650,818 |
2,439,580,357,231 |
|
Liab. & Shareholder’s Equity |
3,732,838,065,882 |
3,587,375,456,169 |
2,997,624,545,038 |
|
Current
Liabilities |
487,863,052,021 |
417,431,230,195 |
331,087,902,923 |
|
Trade Payables |
339,789,255,980 |
278,604,050,961 |
236,328,024,166 |
|
Account Payables |
84,920,769,746 |
93,915,164,339 |
40,626,064,990 |
|
Advance Receipts |
1,210,276,909 |
1,254,010,848 |
615,803,620 |
|
Withholdings |
4,104,530,228 |
4,545,486,288 |
3,404,479,034 |
|
Accrued Expenses |
2,786,520,955 |
1,193,065,001 |
1,012,338,040 |
|
Accrued Income Tax |
22,403,029,146 |
37,239,912,230 |
48,596,701,090 |
|
Deferred Income Tax |
788,669,057 |
679,540,528 |
504,491,983 |
|
Accrued Dividends |
31,860,000,000 |
- |
- |
|
Fixed
Liabilities |
303,690,760,159 |
293,305,575,156 |
226,956,284,884 |
|
Guarantee Deposit Withhold |
13,644,094,500 |
13,644,094,500 |
13,504,983,500 |
|
Deferred Income Tax Credit |
238,294,282,813 |
228,329,710,897 |
166,028,586,903 |
|
Long-Term Account Payables |
46,000,194,890 |
46,217,625,058 |
47,409,097,504 |
|
Provision for Severance & Retirement |
29,775,531,459 |
31,021,660,189 |
25,255,189,650 |
Income
Statement
|
Unit : Korean Won |
01/01/2008~03/31/2008 |
As of 12/31/2007 |
As of 12/31/2006 |
|
Sales |
738,072,559,447 |
2,255,268,363,372 |
2,181,315,418,229 |
|
Cost of Sold Goods |
643,237,871,949 |
1,873,087,911,890 |
1,821,911,759,540 |
|
Gross Profit |
94,834,687,498 |
382,180,451,482 |
359,403,658,689 |
|
Selling & Admin. Expenses |
28,966,868,676 |
108,766,827,614 |
103,957,090,455 |
|
Operating Income |
65,867,818,822 |
273,413,623,868 |
255,446,568,234 |
|
Non-Operating Income |
79,349,870,752 |
345,879,799,641 |
301,288,628,596 |
|
Non-Operating expenses |
13,398,559,532 |
23,314,105,342 |
24,825,956,747 |
|
Ordinary Income |
131,819,130,042 |
595,979,318,167 |
531,909,240,083 |
|
Special Income |
|
|
|
|
Income Before Taxes |
131,819,130,042 |
595,979,318,167 |
531,909,240,083 |
|
Income Taxes Expenses |
34,021,999,891 |
132,619,377,324 |
150,316,967,493 |
|
Net Income |
97,797,130,151 |
463,359,940,843 |
381,592,272,590 |
Cash
Flows
|
Unit : Korean Won |
01/01/2008~03/31/2008 |
As of 12/31/2007 |
As of 12/31/2006 |
|
Cash Flows from Operating |
42,174,577,807 |
350,715,952,585 |
303,594,857,019 |
|
-Net Income |
97,797,130,151 |
463,359,940,843 |
381,592,272,590 |
|
-Exp.
without Cash Outflow |
26,176,539,616 |
100,703,146,393 |
104,727,366,580 |
|
-Revenue
without Cash Inflows |
(-)59,933,151,079 |
(-)285,695,626,271 |
(-)246,322,443,979 |
|
-Changes in
Asset/ & Liability |
(-)21,865,940,881 |
72,348,491,620 |
63,597,661,828 |
|
Cash Flows
from Investing |
(-)9,796,091,233 |
(-)372,468,812,909 |
(-)41,443,401,081 |
|
-Cash Inflow
from Investing |
169,216,285,728 |
963,706,167,742 |
1,508,780,180,585 |
|
-Cash
Outflows for Investing |
(-)179,012,376,961 |
(-)1,336,174,980,651 |
(-)1,550,223,581,666 |
|
Cash Flows
from Financing |
- |
(-)23,895,000,000 |
(-)231,860,000,000 |
|
-Cash
Inflows from Financing |
- |
- |
- |
|
-Cash
Outflows from Financing |
- |
(-)23,895,000,000 |
(-)231,860,000,000 |
|
Increase/Decrease
in Cash |
32,378,486,574 |
(-)45,647,860,324 |
30,291,455,938 |
|
Cash at the
Beginning of Year |
80,903,682,923 |
126,551,543,247 |
96,260,087,309 |
|
Cash at the End of Year |
113,282,169,497 |
80,903,682,923 |
126,551,543,247 |
Products, Technologies, Services
Description
|
Main
Products & Services |
-Resin Products PE(Polyethhylene) PP(Polypropylene) Functional Resin PET(Polyethhylene Terephthalate) -Basic Petrochemicals EO(Ethylene Oxide) /EG(Ethylene Glycol) MMA(Methyl Methacrylate) EOA -Basic Chemicals BTX(Aromatic Compounds) |
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|
Production Capacity (Unit:
Thousand Ton) |
|
Trade
Partners
|
Suppliers |
GS-CALTEX CORPORATION(110111-0078819) MARUBENI-JAPAN ADNOC |
|
Competitors |
DAELIM INDUSTRIAL CO.,LTD(110111-0084915) POLYMIRAE COMPANY LTD.(110111-2062266) SAMSUNG TOTAL PETROCHEMICALS CO.,
LTD.(161411-0013066) |
Related Parties (Subsidiaries,
Joint-Venture & Affiliates)
|
Affiliates |
LOTTE CONFECTIONERY CO.,LTD(110111-0076300) LOTTE SAMKANG CO.,LTD(110111-0033722) LOTTE CHILSUNG BEVERAGE
CO.,LTD(110111-0003684) KP CHEMICAL CORP(230111-0082112) LOTTE SHOPPING CO.,LTD.(110111-0000086) LOTTE MIDOPA CO.,LTD(110111-0045983) LOTTE HAM CO.,LTD.(110111-0229371) LOTTERIA CO., LTD.(110111-0262850) LOTTE FRESH DELICA CO.,LTD.(134511-0034295) LOTTE BOULANGERIE CO., LTD(135511-0109807) LOTTE PHARM CO.,LTD.(110111-0657788) FOODSTAR, INC.(110111-1739155) WELLGA INC.(184511-0000379) HOTEL LOTTE CO., LTD.(110111-01454100 LOTTE GIANTS BASEBALL CLUB(110111-0317556) HOTEL LOTTE PUSAN CO., LTD(180111-00534610 LOTTE MOOLSAN CO.,LTD.(110111-0320707) CINEMA TRADING CO., LTD(110111-3180918) D-CINEMA KOREA CO., LTD.(110111-3837501) LOTTE JTB CO., LTD(110111-3685710) LOTTE TRADING CO., LTD(110111-0159099) LOTTE STATION B/D. CO.,
LTD.(110111-0505903) LOTTE LOGISTICS CORP.(110111-0040446) KOREA SEVEN CO., LTD.(110111-0899976) LOTTE.COM INC(110111-1843972) LOTTE ASAHI LIQUOR COMPANY
LTD.(110111-0530033) FRL KOREA CO., LTD.(110111-3133298) WOORI HOME SHOPPING(110111-2248957) KOREA FUJIFILM CO., LTD(110111-0042715) LOTTE ALUMINUM CO., LTD.(110111-0003121) LOTTE ENGINEERING & MACHINERY MFG. CO.,
LTD.(110111-0154560) CANON KOREA BUSINESS SOLUTIONS
INC.(130111-0007666) LOTTE ENGINEERING & CONSTRUCTION CO.,
LTD(110111-0014764) LOTTE ASSET DEVELOPMENT CO.,
LTD(110111-2394263주) DAEHONG COMMUNICATIONS INC.(110111-0249981) LOTTE DATA COMMUNICATION
COMPANY(110111-1358343) LOTTE CAPITAL CO., LTD.(110111-1217416) LOTTE CARD CO., LTD.(110111-0641434) SEETEC CO., LTD(110111-0589171) KP CHEMTECH CO., LTD.(230111-0100443) LOTTE DAESAN PETROCHEMICAL
CORPORATION(161411-00146840 DAESAN MMA CORPORATION(161411-0016995) CHEONGNA ENERGY CO., LTD.(110111-3256818) |
|
Overseas Office |
SHANGHAI OFFICE RM 22E, PUFA TOWER, NO. 588, SOUTH PUDONG
ROAD, SHANGHAI, CHINA 200120 TEL : 021-5879-5552 FAX :
021-5879-6737 BEIJING OFFICE RM 1408, JINGGUANG CENTER, HUJIA ROAD,
CHAOYANG DISTRICT, BEIJING，CHINA 100020 TEL : 010-6597-8250 FAX : 010-6597-8253 QINGDAO OFFICE RM D, 10FL, WANGJIAO BUILDING, NO.73,
HONGKONG(M) ROAD, QINGDAO, SHANDONG, CHINA 266071 TEL : 0532-8588-8002 FAX :
0532-8588-5919 GUANGDONG OFFICE RM 2515, METRO PLAZA, 183 TIANHE NORTH
ROAD, GUANGZHOU, GUANGDONG, CHINA 510075 TEL : 020-8755-7181 FAX :
020-8755-6573 HONGKONG OFFICE RM 1102, 11F, JUBILEE CENTRE, 18 FENWICH
STREET, WANCHAI, HK TEL : 852-3106-3800, 3 FAX : 852-3105-0850 |
|
Subsidiary |
HONAM OVERSEAS HOLDINGS LIMITED(HONG KONG) (100.0% held by the subject company) |
|
Cooperative Enterprise |
MITSUBISHI RAYON CO., LTD-JAPAN |
Sales by
Region (Activity &
Markets)
|
Sales/ Unit :100 Mil KRW |
2007 |
2006 |
2005 |
|
Export |
12,721 |
11,671 |
10,697 |
|
Domestic |
9,832 |
10,142 |
10,431 |
|
Total |
22,553 |
21,813 |
21,128 |
The Subject exports to China, Indonesia and Japan, and it imports from
Saudi Arabia.
Court
Action
No.
News
Clipping
Chemical companies fined m
JoongangIlbo & Joins.com:06/23/2008
Eight petrochemical companies were slapped with fines and correction
orders for colluding to fix prices for six chemicals.
The Fair Trade Commission said yesterday in a release that it fined
eight local petrochemical companies a total of 12.7 billion won ($12.3 million)
and gave them correction orders.
SK Energy Company, Daerim Corporation, Dongbu HiTek Company, Samsung
Total Petrochemicals Company, Samsung General Chemicals Company and Seetech
Company colluded between 2000 and 2004 to fix the price of styrene monomer,
which is used to make paint, glue and bathtubs among other things.
SK, GS-Caltex Corporation, Samsung Total and Daerim were involved in
price fixing of toluene and xylene between 2002 and 2005.
Samsung Total, Honam Petrochemical Corporation, Seetech and Samsung
General conspired to set the price of mono-ethylene glycol, diethylene glycol
and ethylene oxide between 2001 and 2004.
SK was slapped with the biggest fine, 4.8 billion won.
Next was GS-Caltex with 2.9 billion won, followed by Samsung Total with
1.8 billion won.
Honam, Daerim, Dongbu, Seetech and Samsung General were fined 898
million won, 619 million won, 471 million won, 844 million won and 395 million
won, respectively.
By Limb Jae-un Staff Reporter [jbiz91@joongang.co.kr]
- Copyrights ⓒ JoongangIlbo &
Joins.com, All rights reserved. –
Chemical makers consider using LPG
JoongangIlbo & Joins.com:07/27/2007
Honam Petrochemical Corp., a Korean ethylene maker, may partly replace
naphtha with cheaper liquefied petroleum gas, or LPG, as its raw material
starting in October, a company official said.
The company may substitute as much as 10 percent of the 2.2 million
metric tons of naphtha it buys annually to process into ethylene, said the official,
who declined to be identified.
Honam Petrochemical is among a growing number of companies, including
CPC Corp.
and LG Petrochemical Co., now switching to LPG after naphtha prices rose
to a record.
Butane, a component of LPG, cost $63 a ton, or 9.3 percent less than
naphtha in June, according to data compiled by Bloomberg.“A price difference of
$60 a ton between naphtha and LPG will make the gas an attractive substitute
for chemical-makers,” Hiroki Ito, LPG manager at Total SA’s trading unit in Singapore,
said.
Butane is the preferred gas for ethylene production in Asia.
Bloomberg
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FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.37 |
|
UK Pound |
1 |
Rs.85.51 |
|
Euro |
1 |
Rs.68.08 |
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%)