MIRA
INFORM REPORT
|
Report Date : |
22.11.2008 |
IDENTIFICATION DETAILS
|
Name : |
UCO BANK |
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Formerly Known As : |
The United Commercial Bank Limited |
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Registered Office : |
10 BTM Sarani, Kolkata - 700 001, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Year of Establishment : |
1943 |
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Legal Form : |
Subject is a Government
of India Bank. The Bank’s Shares are traded on the Stock Exchanges. |
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Line of Business : |
Subject is engaged in
Banking Activities. |
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 : |
Large |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an old established Public Sector Government of India Bank. It
has satisfactory track records. Trade relations are fair. Payments are
usually correct and as per commitments. The bank has short steady progress. It can be considered normal for
business dealings for business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
10 BTM Sarani, Kolkata - 700 001, West |
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Tel. No.: |
91-33-22343600 / 3661 |
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Fax No.: |
91-33-22254538 |
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Website : |
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Branches : |
The Bank operates from 1794 branches |
DIRECTORS
|
Name : |
Mr. V.K Dhingra |
|
Designation : |
Executive Director |
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Name : |
Mr. B.M. Mittal |
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Designation : |
Executive Director |
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|
Name : |
Mr. A. Bhatthcharya |
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Designation : |
Director |
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Name : |
Mr. N.P. Sinha |
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Designation : |
Director |
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Name : |
Mr. Nirmal Khatri |
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Designation : |
Director |
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Name : |
Mr. P.L. Mittal |
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Designation : |
Director |
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|
Name : |
Mr. R.N. Jain |
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Designation : |
Director |
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Name : |
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Designation : |
Director |
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|
|
Name : |
Mr. J.C. Shandil |
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Designation : |
Director |
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|
|
Name : |
Mr. V. P. Shetty |
|
Designation : |
Chairman and Managing
Director |
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|
Name : |
Mr. B. K. Datta |
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Designation : |
Executive Director |
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|
|
|
Name : |
Mr. S. C. Gupta |
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Designation : |
Director |
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|
|
|
Name : |
Mr. S. K. Dutta |
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Designation : |
Director |
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|
Name : |
Mr. Sudesh Kumar |
|
Designation : |
Director |
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|
Name : |
Dr. R. A. Yadav |
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Designation : |
Director |
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|
|
Name : |
Mr. N. H. Siddiqui |
|
Designation : |
Director |
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|
|
|
Name : |
Prof. Mousumi Ghosh |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. A. Sakthivel |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. B. M. Bhide |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. S. Roy Choudhury
|
|
Designation : |
Director |
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|
|
|
Name : |
Mr. M. K. Bhagchandka |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. K. Vijayan
|
|
Designation : |
Director |
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other
personnel
|
Deputy General
Manager |
|
|
Ms.
D. Gurung Mr.
K. C. Paliwal Mr.
V. K. Upadhyay Mr.
D. Ray Bardhan Mr.
P. K. Das Mr.
B. K. Das Mr.
V. P. Singh Mr.
D. G. Ramrakhiani Mr.
A. P. Chandra Mr.
B. K. Basu Mr. P.
K. Chakraborty Mr.
S. Ramakrishnan Mr.
S. Sen Mr.
P. K. Dutta Mr.
S. K. Das Mr.
P. K. Sharma Mr.
R. K. Mukherjee Mr.
D. P. Chatterjee Mr.
S. Konar |
|
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|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2008
|
Names of Shareholders |
No. of Shares |
|
Central Government |
599360000 |
|
Public and Others |
200000000 |
|
Total |
799360000 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in
Banking Activities. |
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GENERAL INFORMATION
|
No. of Employees : |
32086 |
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Bankers : |
Reserve Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S.N. Guha and Company
Chartered Accountants Kansal Singla and Associates Chartered Accountants Parikh and Jain Chartered Accountants S.P. Puri and Company Chartered Accountants K.K.S. and Company Chartered Accountants A.R. and Company Chartered Accountants Statutory Central Auditors
P. A. and Associates Chartered Accountants N. C. Mitra and Company Chartered Accountants M. Choudhary and Company Chartered Accountants H. K. Chaudhry and Company Chartered Accountants Vinod Kumar and Associates Chartered Accountants L. B. Jha and Company Chartered Accountants |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1500000000 |
Equity Shares |
Rs.10/- each |
Rs.15000.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
799360000 |
Equity Shares |
Rs.10/- each |
Rs.7993.600
millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
|
31.03.2008 |
31.03.2007 |
|
CAPITAL & LIABILITIES |
|
|
|
|
Share Capital |
|
7993.600 |
7993.600 |
|
Reserves & Surplus |
|
21269.599 |
18627.255 |
Total
|
|
29263.199 |
26620.855 |
|
|
|
|
|
|
Deposits |
|
799089.426 |
648600.055 |
|
Borrowings |
|
17159.494 |
24658.618 |
|
Other Liabilities & Provisions |
|
52437.260 |
48759.427 |
|
|
|
|
|
GRAND
TOTAL
|
|
897949.379 |
748638.955 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and Balances with Reserve Bank of |
|
57027.167 |
37942.718 |
|
Balance with Bank and Money at Call and
Short Notice |
|
24008.046 |
24202.601 |
|
Investments |
|
242496.325 |
195248.745 |
|
Advances |
|
550818.940 |
469889.141 |
|
Fixed Assets |
|
6843.359 |
6666.995 |
|
Other Assets |
|
16755.542 |
14688.755 |
GRAND
TOTAL
|
|
897949.379 |
748638.955 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
|
Interest Earned |
|
65085.559 |
52100.597 |
|
Other income |
|
7721.295 |
5504.332 |
|
Total Income |
|
72806.854 |
57604.929 |
|
|
|
|
|
|
Net Profit for the year |
|
4121.563 |
3160.989 |
|
|
|
|
|
Expenditures:
|
|
|
|
Interest Expended
|
|
50208.128 |
36231.642 |
Operating Expenses
|
|
13059.254 |
11925.713 |
Provisions
& Contingencies
|
|
6329.909 |
6286.585 |
Less: MAT Credit Entitlement
|
|
(912.000) |
0.000 |
Total
Expenditures
|
|
68685.291 |
54443.940 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2008 |
30.09.2008 |
|
Type |
1st
Quarter |
2nd Quarter |
|
Sales Turnover |
18374.500 |
19937.300 |
|
Other Income |
1617.100 |
1942.500 |
|
Total Income |
19991.600 |
21879.800 |
|
Total Expenditure |
4342.200 |
4561.000 |
|
Operating Profit |
15649.400 |
17318.800 |
|
Interest |
14290.500 |
15823.500 |
|
Gross Profit |
1358.900 |
1495.300 |
|
Depreciation |
0.000 |
0.000 |
|
Tax |
24.500 |
(5.600) |
|
Reported PAT |
1334.400 |
1500.900 |
KEY RATIOS
|
Particulars |
|
31.03.2008 |
31.03.2007 |
|
Credit Deposit Ratio |
|
70.51 |
70.66
|
|
Investment Deposit Ratio |
|
30.24 |
32.80
|
|
Cash Deposit Ratio |
|
6.56 |
4.88
|
|
Interest Expended /
Interest Earned |
|
77.14 |
69.54
|
|
Other Income / Total
Income |
|
10.69 |
10.40
|
|
Operating Expense / Total
Income |
|
18.00 |
21.28
|
|
Interest Income / Total
Funds |
|
7.95 |
7.67
|
|
Interest Expended / Total
Funds |
|
6.13 |
5.34
|
|
Net Interest Income / Total
Funds |
|
1.82 |
2.34
|
|
Non Interest Income /
Total Funds |
|
0.95 |
0.89
|
|
Operating Expense / Total
Income |
|
1.60 |
1.82
|
|
Profit Before Provisions
/ Total Funds |
|
1.06 |
1.35
|
|
Net Profit / Total Funds |
|
0.50 |
0.47 |
|
Return On Net Worth (%) |
|
13.67 |
13.16 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Kolkata - based UCO Bank [UCO] (formerly known as The United Commercial
Bank Limited), currently wholly-owned by the Government of India (GoI).
It has comeout with its initial public offer of 20,00,00,000 equity shares of
Rs 10 each for cash at premium of Rs 2 per share, aggregating Rs.2400 millions,
through the fixed price route on 3rd Sep 2003.
The main object of the issue is to augment long-term resources in line with the
estimated growth in assets and maintain a comfortable capital adequacy ratio
(CAR). Subject's current CAR is 10.04% as on March 2003 as against the Reserve
Bank of India (RBI) stipulation of 9% and, post-IPO, CAR will go up further.
After the issue, the shareholding of GoI will come down to around 74.98%. The
above equity capital is after making adjustment of accumulated losses of
Rs.16651.600 millions, for which approval has been received from the Ministry
of Finance.
In the recent past, one of the major challenges before subject was to
neutralise the accumulated losses incurred by it for 10 consecutive years,
i.e., from FY 1990 to FY 1999. To overcome this debilitating factor and to
strengthen the bank's performance in various functional areas, a major
revamping exercise was initiated. In 1997, the bank formulated a three-year
strategic revival plan (SRP) (1997-2000). The plan focussed on accelerated
growth of deposits, improvement in deposit mix, credit deployment, improvement
in portfolio quality, control and supervision of NPAs, technology upgradation,
cost control, improvement in customer service and other areas of house keeping.
It successfully implemented SRP and achieved the objective of a turnaround in
three years.
Further, subject implemented a three- year medium-term restructuring plan
(MTRP) in 2000-2003 with a clear objective of becoming a top-class bank with
professional ethos and also to earn substantial operating profit and net
profit, year after year.
In the year 2005-06 the bank has opened 17 branches out of which 8 branches
were by way of upgradation of extension counters and the remaining 9 were new
branches. The bank has opened 2 new extension counters and closed 5 extension
counters.
The bank had 1744 Branches of which 1740 are Domestic branches and 4 are in
Overseas Branch, 155 Extension Counters and 35 Regional Offices as on 31st
March 2006. The Bank has 13 Service Branches and one Integrated Treasury
Management Branch at Mumbai.
MANAGEMENT DISCUSSION
AND ANALYSIS
Review of Indian Economy: 2007-08
The Indian economy during the year 2007-08 witnessed a mild slowdown in its
growth slope amidst domestic tightening of monetary policy and slowdown in
other economies which was offset by continued growth in domestic markets. The
highlights of the performance include:
The real economy
* The FY 2007-08 is the fifth consecutive year that the Indian Economy
continued to expand at a robust pace.
* The real GDP growth rate in the year 2007-08 is estimated at 8.7 per
cent according to the advance estimates of Central Statistical Organization.
The growth rate of GDP in the year 2006-07 was 9.6 per cent.
* The growth performance was in tune with the high average real GDP
growth of 8.7 per cent per annum during the five-year period, 2003-04 to
2007-08.
* The total food-grain production is expected to reach an all-time high
at 227.3 million tonnes, recording an increase of 4.6 percent over the previous
year at 217.3 million tonnes.
* The Index of industrial production (IIP) rose by 8.7 per cent during
the year 2007-08 (April-February) compared with an increase of 11.2 per cent
during 2006-07 (April February).
* The manufacturing sector recorded a growth of 9.1 per cent during 2007-08
(April-February) as compared with 12.2 per cent during April-February,
2006-07.
* The growth of the infrastructure sector was placed at 5.6 per cent
during the year 2007-08 (April-February) as compared with 8.7 per cent in the
year 2006-07 (April-February).
* The services sector continued to be the major contributor to GDP growth
at 10.6 per cent during 2007-08.
* Gross domestic saving as percentage of GDP at current market prices was
placed at 34.8 per cent in 2006-07 as compared to 34.3 per cent in 2005-06 due
to improved saving performance by the private corporate and public sectors. The
household saving rate showed marginal decline in 2006-07 over the previous year
due to decline in the financial saving rate.
The fiscal and monetary conditions
* The gross fiscal deficit during the 2007-08 as per the revised
estimates was placed at 3.1 per cent of GDR
* Broad money growth (M3) on year-on-year (y-o-y) basis stood at 20.7 per
cent as at end March, 2008 as compared to 21.5 per cent a year ago.
The price situation
* Inflation based on the wholesale price index (WPI) softened from 6.4
per cent at the beginning of the fiscal year to a low of 3.1 per cent in middle
of October, 2007 before increasing again to 7.4 per cent by end March, 2008
reflecting hardening of prices of primary articles, fuel and core manufactured
product items.
* Consumer price inflation was placed in the range of 5.5 - 7.9 per cent
during February/March, 2008 as compared with 6.7 - 9.5 per cent in March,
2007.
* Inflation firmed up in major economies, mostly during the second half
of 2007-08, reflecting the combined impact of higher food and fuel prices as
well as strong demand conditions, especially in emerging markets.
* The monetary policy responses during the year were mixed in view of
heightened concerns in regard to the implications of credit crunch arising out
of the
* Global commodity prices firmed up during 2007-08 led by sharp increases
in food and crude oil prices. Metal prices, which had witnessed some moderation
during June-December 2007, rose again during January-March, 2008. International
crude oil prices rose to a historical peak of US $ 1 19.2 a barrel. Food prices
firmed up especially during the second half of 2007-08, led by wheat, rice, and
oil seeds/edible oils reflecting surging demand (both consumption demand and
demand for non-food uses such as bio-fuels production) and low stocks of major
crops.
Banking
Developments: 2007-08
* Aggregate Deposits of banks on y-o-y basis increased by 21.2 per cent
as at end March 2008 as compared with 22.3 per cent a year ago
* Non-food credit expanded by 22.3 per cent on y-o-y basis as compared
with 28.5 per cent in 2006-07. Growth in bank credit moderated during 2007-08
after the strong pace in the preceding three years.
* Bank Rate, Repo Rate and Reverse Repo Rate remained unchanged
throughout the year 2007-08 at 6 per cent, 7.75 per cent and 6 per cent
respectively.
* No change was effected in Statutory Liquidity Ratio (SLR) throughout
the year 2007-08.
* Cash Reserve Ratio increased from 6 per cent as on 31.03.07 to 7.5 per
cent by 31.03.08: Changes effected in CRR during the year 2007-08 include :
April 14, 2007 hiked by 0.25 per cent; April 28, 2007 by 0.25 per cent; August
4, 2007 by 0.50 per cent; November 10, 2007 by 0.50 per cent.
* Revised guidelines on lending to the priority sector by all SCBs
issued.
* State Level Bankers' Committee convenor banks advised to set up, on a
pilot basis, a financial literacy-cum-counselling centre in any one district,
and based on the experience gained, to ask the concerned lead banks to set up
such centres in other districts.
* Banks are urged to scale up IT initiatives for financial inclusion
speedily while ensuring that solutions are highly secure, amenable to audit,
and follow widely-accepted open standards to ensure eventual inter-operability
among the different systems.
* The risk weight on the residential housing loans to individuals reduced
from the existing 75 per cent to 50 per cent as a temporary measure. The
dispensation will be applicable for loans up to Rs.2.000 millions and will be
reviewed after one year, keeping in view the default experience and other
relevant factors.
* Banks are urged to follow prescribed specific
considerations while engaging recovery agents. Abusive practices followed by
banks' recovery agents would invite serious supervisory disapproval.
Bank's
Performance:
Branch Network:
The year 2007-08 has been a remarkable year as the Bank could open 95
branches, out of which 66 branches were opened on the 6th January, 2008 itself
to commemorate the 65,h Foundation Day of the Bank. Out of these 95 branches
opened during the financial year 2007-08, 40 branches were opened with fresh
Authorisations and 55 were by way of upgradation of extension counters. One
branch namely, New Town, Moga, an urban branch, was merged during the year with
effect from 1.6.2007. With the opening of 95 new branches and merger of one
branch, the total number of domestic branches as at the end of 31s* March, 2008
stood at 1957. There has been no change in the number of overseas branches
which continued to be 2 each in
During the financial year 2007-08, one Representative Office at
On the domestic front, out of the total number of 1957 branches the Bank
continued to have 13 Service Branches and one Integrated Treasury Management
Branch at Mumbai as at the end of 31st March, 2008.
Flagship and Mid-Corporate Branches:
During the financial year 2007-08, the Bank had opened 12 Mid-Corporate
Branches, out of total number of 95 branches opened during the year. With the
opening of 12 Mid-Corporate branches, the total number of Mid-Corporate
branches, as at the end of 31st March, 2008, stood at 21. The total number of
Flagship Corporate branches of the Bank continued to be four as at the end of
31st March, 2008.
The Bank has converted two of its existing branches exclusively for catering to
needs of Senior Citizens and named these branches as 'Senior Citizen branches'.
These branches were opened at
Extension Counters:
During the financial year 2007-08, 55 extension counters were upgraded
into full-fledged branches out of 87 extension counters existing as at the end
of 31st March, 2007. During the year, 13 extension counters were merged with
the base branch. With the upgradation of 55 extension counters into
full-fledged branches and merger of 13 extension counters with the base branch,
the total number of Extension Counters as at the end of 31st March, 2008 stood
at 19.
WEBSITE DETAILS:
PROFILE:
Founded in
1943, Subject is a commercial
bank and a Government of India Undertaking. Its Board of Directors consists of
government representatives from the Government of India and Reserve Bank of
Shri S.K. Goel
Chairman and Managing Director
Shri V.K. Dhingra
Executive Director
Shri B. M. Mittal
Executive Director
Global banking has changed rapidly and Subject has worked hard to adapt to
these changes.
Subject, with years of dedicated service to the Nation
through active financial participation in all segments of the economy -
Agriculture, Industry, Trade and Commerce, Service Sector, Infrastructure
Sector etc., is keeping pace with the changing environment. With a countrywide
network of more than 2000 service units which includes specialised and
computerised branches in
They are in the Service of Community since 1943.
They have nearly 2000 Service Units spread all over
They also operate in two Major International Financial
Centres namely Hongkong and
They have the Correspondents/Agency arrangements all over the world.
They undertake Foreign Exchange Business in more than 50
Centres in
They have Foreign Exchange Dealing Operations at 4 Centres.
Country-wide presence
Overseas Presence with Profitable Overseas Operations
Strong Capital Base
High Proportion of Long Term Liabilities
A Well Diversified Asset Portfolio
A Large and Diversified Client Base
Fully Computerised Branches at Major Centres
Branch representation in Top 100 Centres (as per deposits) in the country
Headquartered in Kolkata, the Bank has 35 Regional Offices
spread all over
In all the promotional activities, they will be fair and reasonable in highlighting the salient features of the schemes marketed by them. Misleading or unfair highlighting of any aspect of any scheme/service marketed by the Bank leading to unfair practice shall not be resorted to by the Bank.
In commemorating the 50th Year of Independence of India, the Bank released a booklet entitled "Their Commitment to Customers " incorporating the Citizen's Charter on services provided by the Bank.
In their continuing endeavour to serve the customers better,
they have considerably extended the business hours for public transaction at
the branches on all week-days. They have also introduced a number of NO
CMT REPORT (Corruption, Money Laundering
& Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.03 |
|
|
1 |
Rs.74.42 |
|
Euro |
1 |
Rs.62.71 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
55 |
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%)
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 |
|